At least as important as getting capital levels right, however, are new capital frameworks to provide financial markets with better information on risk-taking by banks. In particular, by leading the development of new capital adequacy regimes, the Fed is actively working to improve the flow of information about financial institutions to market participants.
Carving out of CRE-RH was done with the intention of providing regulatory support to lending towards residential housing projects by allowing lower provisioning and risk-weights. Apart from this, different slabs of LTV ratios, risk weights and provisioning have been prescribed to support housing loans for lower income groups while stressing the need for higher stake of home buyers in high cost houses. 19.