http://timesofindia.indiatimes.com/business/india-business/RBIs-funds-can-be-used-to-recapitalize-PSU-banks/articleshow/51163068.cms
not sure how the math works but the RBI fx reserves have negative net claims and 32 % equity. definition of rbi capital
The survey said that resolving the twin balance sheet (TBS) problems — the impaired financial position of staterun banks and some large corporate houses — would require four Rs: recognition, recapitalization, resolution and re form. "By now, it is clear that the TBS problem is the major impediment to private investment and thereby to a full-fledged economic recovery."
It cites data to show that the RBI is an outlier with an equity share of about 32% of its balance sheet size, second only to Norway and well above that of the US Federal Reserve and the Bank of England whose ratios are less than 2%. The conservative European Central Bank and emerging market central banks have much higher ratios, but even they do not approach the level of the RBI. Equity includes the capital, retained earnings and contingency funds.
not sure how the math works but the RBI fx reserves have negative net claims and 32 % equity. definition of rbi capital
The survey said that resolving the twin balance sheet (TBS) problems — the impaired financial position of staterun banks and some large corporate houses — would require four Rs: recognition, recapitalization, resolution and re form. "By now, it is clear that the TBS problem is the major impediment to private investment and thereby to a full-fledged economic recovery."
It cites data to show that the RBI is an outlier with an equity share of about 32% of its balance sheet size, second only to Norway and well above that of the US Federal Reserve and the Bank of England whose ratios are less than 2%. The conservative European Central Bank and emerging market central banks have much higher ratios, but even they do not approach the level of the RBI. Equity includes the capital, retained earnings and contingency funds.
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