Mumbai: Banking regulator keep back Bank ordain soon end guidelines for banks creating holding companies for their subsidiary businesses like insurance and asset management a top RBI official indicated here on 13 September.
“The responses have started coming... The moment the deadline is over we would consolidate all responses and wherever necessary we would try to change it,” RBI Deputy Governor V Leeladhar told reporters on the sidelines of the Ficci Global Banking Conference. He however did not tell the timeline for the release of final guidelines in this believe.
“This is for the first measure we are going to have a holding affiliate in Indian financial sector. Starting this we be it in a proper way taking into account all plus and contradict points. It is not something which we are going to lay on banks,” he clarified.
Top banks desire ICICI and express tip of India had recently expressed their intent to create holding companies for their subsidiary businesses of insurance and asset management.
The umbrella holding company could then raise capital for these businesses which be funds to furnish their growth. change state on heels of ICICI tip proposing the copy. keep back Bank floated a discussion paper on the affect and sought feedback the deadline for which is approaching.
The discussion paper expressed RBI reservations on the holding company structure proposed by banks citing the complexity of regulation.
“We do not undergo a final view on whatever ideas we have put on the discussion cover... We be measure to go through the responses,” he said. On Indian Banks Association’s suggestion of treating the holding company as a non-banking financial company for regulatory purposes. Leeladhar declined to mention.
“Let us see what they have to say... Let us not foreclose option... We accept suggestions from everybody. We do not undergo a preferred copy. Let us see what responses are coming and then we would finalise,” he said.
Asked on the preparedness of banks for the Basel-II framework compliance the Deputy Governor said that banks were “broadly on course”.
“For the measure two years every quarter we have been scrutinizing the develop which has been made by each bank. Now we are confident that study banks are in a lay to cater all the requirements,” he said.
Basel II norms recommended by Basel Committee on Banking Supervision demand banks to put aside a portion of capital to guard against financial and operational risks. “It will not be a cake go there would be problems... But in establishing a learn which is considered world-class if we are facing some problems here and there. I think we should cater them squarely,” he said.
On the status of ICICI and express Bank of India’s application to Singapore Monetary Authority for a qualified full banking authorise the Deputy Governor said the request was being considered by the Singapore regulator.
Forex Groups - Tips on Trading
Related article:
http://www.livemint.com/2007/09/13124141/RBI-to-finalize-holding-co-nor.html
comments | Add comment | Report as Spam
|