RBI guidelines on Capital Treatment of Banks’ Balance Sheet
In simple words the bank capital is the difference between a bank’s assets and liabilities. However, Banking regulators all over the word have their own definition of regulatory capital of banks in closer alignment with Basel Framework. The core banking regulatory framework across the banking sector consists of international standards enacted by the Basel Committee…
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What are MONETARY AGGREGATES ?
Monetary aggregates are broad categories of money that measure the money supply such as cash and demand deposits or bank credits which have an impact on the aggregate economic activity. Appraising monetary aggregates can generate a lot of information about the financial stability and overall health of a country. For example, if large amount of…
Read article What is Liquidity aggregate?
In banking and finance parlance, liquidity refers to the ability to convert one asset into another or to use assets to meet obligations. Liquidity indicates the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Market liquidity refers to stock market where the…
Read article RBI cuts repo rate by 25 basis points
Reserve Bank of India (RBI) has today (Feb 7)announced its sixth Bi-Monthly Monetary Policy Rates for 2018-19 in Mumbai. The Monitory Policy Committee (MPC) of Reserve Bank of India On the basis of an assessment of the current and evolving macroeconomic situation at its meeting decided to reduce the policy repo rate under the liquidity…
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Explained: Money, money supply and money supply curve
Economists worldwide have noticed a strong correlation between the inflationary trend and the growth of money in circulation in a point in time. Thus, a government that is in principle responsible for currency notes and coins issued by it, is answerable to its citizen and gets their value by dint of regulation or law. For…
Policy Repo Rate remains unchanged : RBI announces 5th Bi-Monthly Statement for 2018-19
December 5, 2018: The Monitory Policy Committee (MPC) of Reserve Bank of India in its fifth Bi-Monthly Statement for 2018-19, announced today(December 5,2018) keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal…
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