In my address last year, I had touched upon some of the burning issues that the global policy makers were grappling with. The financial markets have since stabilised and there is recovery in risk appetite but this primarily reflects the unprecedented and extraordinary policy measures taken by central banks and governments.
However, StCBs and DCCBs cannot continue to operate in the banking environment with such a low capital base. These banks were introduced to the concept of Capital to Risk weighted Assets Ratio (CRAR) in December 2007 and advised to disclose the level of CRAR every year as ‘Notes on Accounts’ to their Balance Sheets.