Seeking this capital externally at this stage may be difficult as also value eroding for the majority owner. Simultaneously process has to continue to bestow greater “Governance Autonomy” to these banks. My sense is that the Government ownership of these banks has resulted in crucial stability and resilience in trying times. Immediate roadmap should, therefore, be towards complete “managerial autonomy”.
We’ve added potential sources of vulnerability, such as the balance sheets of households, companies and banks, to our macroeconomic models. We are using enhanced frameworks, fuelled by more and better data, to help monitor the financial system and make more informed judgments about stability risks and how they might interact with each other. We have boosted the profile of our semi-annual FSR publication.