|
|
|
|
|
Extensive Set of Direct Controls |
|
Dominance of Public Sector Banks and FIs |
|
Policy Aimed at Directed / Subsidized Lending |
|
Hidden Losses / Inflated Profits |
|
Questionable Accounting Practices |
|
|
|
|
|
|
|
|
|
|
Separation of Management and the Board |
|
Fit and Proper Test of Board Members &
Senior Management of Banks |
|
Limit of 25% Representation on BOD by Majority
Ownership |
|
Prohibition on Concurrent Representation on BOD
of Banks and Brokerage Houses |
|
Independent Audit Committee of the Board |
|
|
|
|
CAMELS-S |
|
Minimum Capital Requirements |
|
Continuous Off-Site Monitoring-CAELS |
|
Adoption of IAS and Other Standards |
|
Compliance with Core Principles |
|
Mandatory Credit Rating |
|
Market Based Monetary & Credit Policy |
|
|
|
|
|
Prompt Corrective Actions: |
|
Cancellation of License |
|
Change in Ownership and Management |
|
Debarring of Two Audit Firms |
|
Raising Nominal Capital Requirement |
|
Removal of Restrictions on Consumer Financing |
|
Enactment of Enabling Laws |
|
Tax Relief on Mortgages |
|
Reduction in Corporate Taxation |
|
|
|
|
|
Privatization |
|
Three Commercial Banks Already Privatized |
|
One DFI Liquidated |
|
Partial Divestment (20%) in One Bank |
|
Public Sector Share in Banking to Decline to 20% |
|
Private Sector Boards |
|
Resolution of Non-performing Loan Stock |
|
Appointment of Professional Management |
|
Time Bound Restructuring Plan |
|
Rationalization of Staff / Branches |
|
Strengthening of Systems & Internal Controls |
|
Augmenting Capital Base |
|
Diversification & New Products and Services |
|
Merit Based Recruitment System |
|
|
|
|
Easing of Entry Barriers / Licensing |
|
Reduced Taxation on FIs |
|
Liberalization of Foreign Exchange Regime |
|
Product Diversification |
|
Liberalization of Branch Policy |
|
Strengthening of Capital Base |
|
Promoting Mergers and Acquisitions |
|
Separation of Banks & Non Bank Financial
Institutions |
|
Payment / Settlement System |
|
Developing Long-Term Paper |
|
Capital Market Reforms |
|
Phasing Out of Mandatory & Concessional
Credit Programs |
|
Greater Transparency & Disclosure |
|
|
|
|
|
Notes