I will now turn to the key areas where banks need to focus while planning their businesses for higher growth, keeping in view the on-going international regulatory initiatives. The Basel Committee has brought out on December 17, 2009, two consultative documents containing key proposals that will be taken up for an impact study before adoption.
These proposals cover raising quality and coverage of capital to ensure loss absorbency on a going and gone concern basis, greater stress on Tier-I and common equity component, introduction of leverage ratio, measures to deal with pro cyclicality such as capital buffers and forward looking provisioning, introduction of minimum liquidity ratios and enhanced capital for trading book securitisations and counterparty credit exposures. 6.