These category A banks will be reviewed regularly to ensure they remain in good financial health and continue to observe all rules and regulations, focusing on three main criteria: their business plans, the ‘fit and proper’ test of their owners, and the nature of any capital injection.
3  BIS Review 34/1999  With regard to the state banks, all regional development banks will be recapitalized by the Government such that they have a capital adequacy ratio of at least 4%. Mergers between the seven existing state banks will allow us to create some stronger and healthier banks.