Volatile deposits represent only 1.6 per cent of total deposits. The average daily turnover in the interbank market is as low as 0.2 per cent of the total assets of the banking system. The quality of the deposit base has a bearing on the ability of a bank to meet its funding requirements in a crisis situation.
This, combined with a strong capital adequacy ratio, is reflected in the resilience of the banking sector. Second, domestic banks did not have a huge trading book. The Bank recently issued the final guideline on Market Risk Management after analysing the trading book of commercial banks over a period of more than a year.