Wednesday, December 28, 2011

RBI asks banks to set aside more capital for investing in financial entities

.... "The performance of the subsidiaries affects the balance sheet of the bank,'' RBI deputy governor Anand Sinha said recently. "On account of varied activities carried on by the entities in the group which fall within the regulatory jurisdiction of multiple regulators, the risk to the system as a whole posed by such financial conglomerates is difficult to assess.''

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