Global convergence of banking regulations and its impact on the Indian banking system - G Padmanabhan

Address by Mr G Padmanabhan, Executive Director of the Reserve Bank of India, at the Bankers Club, Raipur, 13 July 2012

.....The need for convergence in banking regulation stems from the fact that while banking has become global, banking regulation is national. Therefore, addressing the issue of regulatory arbitrage is at the centre-stage of policy concern. The international standard setters have been attempting to achieve convergence by issuing broad principles that should inform national regulatory frameworks, which are peer reviewed under the aegis of the Financial Stability Board and the Basel Committee on Banking Supervision for ensuring cross-border harmonization. While formulating national regulatory policies, national authorities are expected to exercise constrained discretion on certain aspects.......

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