As the central bank and as the regulator of large segments of the financial sector, the Reserve Bank too has an important role to play in this. What I propose to do today is to discuss some important macroeconomic challenges from the Reserve Bank’s perspective. 12.
When we move from the microprudential to macroprudential rationale for capital regulation, there is no such single accepted method for calibration. We do want to reduce further the probability that a SIFI might fail under stress.