Companies will be forced to be more innovative in their funding The Reserve Bank of India's (RBI) recent proposal to further limit banks' exposure to a single corporate and connected parties could prompt companies to tap the local debt capital markets. In a March 27 discussion paper, the regulator proposed capping exposure to connected counterparties at 25% of a financial institution's eligible capital base.
China's new deposit insurance scheme is a first step towards liberalising interest rates and allowing bank resolution. Its introduction is seen by many as a step towards the government allowing financial institutions to fail.
