Rbi Gives Banks One Year More For Disclosure

The Reserve Bank of India extended the deadline, till March 2001, for introducing tougher disclosure norms for commercial banks on the maturity pattern of assets and liabilities.

Earlier, the banks were supposed to reveal the maturity pattern of deposits, loans, investments, foreign assets and liabilities and borrowings in balance sheets for the year ending March 2000.

Also, the banks were required to cover all data under their asset-liability management system, but this requirement is also being relaxed on a case-by-case basis as the banks do not have advanced data management information systems.

The move follows the banks' plea that a grace period be granted for establishing the advanced disclosure norms demanded by the central bank.

 

Last year, the RBI unveiled new asset-liability norms_like quarterly submission of statements of interest rate sensitivity and structural liquidity_to be put in place by April 1, 2000, .

The norms directed the banks to establish risk management departments, independent of their treasury departments, and to form a separate risk management committee, besides the assets-liability management committee.

The norms included submission of statements of "interest rate sensitivity" monthly and of "structural liquidity" every quarter from April 1, 2000.

Also, the outflow-inflow mismatch should not be more than 20 per cent of the inflows during the 1-14 day and 15-28 day bucket period.