Tuesday, January 8, 2013

RBI may allow partial SLR conversion to meet Basel-III

T
he Reserve Bank today hinted at allowing part of the statutory liquidity ratio (SLR) holdings of banks to be treated as liquid assets under the Basel-III guidelines, which will come into effect next fiscal. "We already have quite a bit of liquidity ratio requirement.... If you look at our SLR, it is supposed to be maintained continuously. "Therefore, question arises whether we add some more liquidity on top of SLR, which will be definitely not good for our banks. So, we are looking at carving out SLR so that a part of it can become usable," RBI Deputy Governor Anand Sinha told reporters on the sidelines of an event.........

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