After the two banking companies have passed the necessary resolution in their general meetings representing not less than two third value of the shareholding of each of the two banking companies, proposing for the amalgamation of one bank with another bank, such resolution containing scheme of amalgamation is submitted to the Reserve Bank for its sanction and if sanctioned, by an order in writing by the Reserve Bank, is binding not only on the banking company concerned, but also on all shareholders thereof.
Secondly we also – for the first time ever – adopted global liquidity standards alongside the new capital regime. This is also an appropriate step, for the recent crisis was driven strongly by liquidity problems. At the end of October, the Basel Committee published its final rules, which will place banks’ funding on a more stable basis.