Yale School of Management

Posts by Capital

The RBI expands its regulatory reach: Reforms to watch

September 10, 2020
YPFS
India’s urban cooperative banks (UCBs), which have total assets of more than US$81.5 billion as of March 2019, will now be able to issue equity and will be subjected to additional supervision by the Reserve Bank of India (RBI) under a new regulatory regime that the government introduced in June.  Continue reading “The RBI expands its regulatory reach: Reforms to watch”

Countries Ease Bank Capital Buffers

April 16, 2020
Countries around the world are easing bank capital requirements to help banks absorb losses and to allow them to maintain the flow of credit during the COVID-19 crisis.  Most of these measures involve the Basel III capital standards that global regulators agreed to implement after the 2007-09 financial crisis. Thanks to Basel III and like measures, banks across the world have substantially more capital than they had heading into that crisis. However, the current crisis threatens to quickly eat into those capital cushions. Banks are already reporting substantial credit losses and growing balance sheets, as they meet existing commitments and extend new loans. Easing capital standards today is a form of macroprudential policy, because regulators’ focus is on maintaining the health of the financial system as a whole.  Continue reading “Countries Ease Bank Capital Buffers”