The objective was not so much to lean against the wind of rising asset prices but as a cautionary measure to contain the exposure of the banking sector to sensitive asset classes where rapid credit expansion was observed. •  Banks are required to hold a minimum of 25 percent of their liabilities in the form of liquid domestic sovereign securities.
This stipulation has worked both as a solvency as well as a liquidity buffer. •  The credit conversion factors (CCF) used for calculating the potential future credit exposure for off-balance sheet interest rate as well as exchange rate contracts were doubled across all maturities in 2008.