On Monday RBI released the K V Kamath-led Committee report, which had recommended financial parameters to be factored in the resolution plans under the ‘Resolution Framework for Coronavirus-related Stress’ along with sector specific benchmark ranges for such parameters.
The Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake of the Covid-19 outbreak is fuelling excesses across United States capital markets. The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today.
The Fed announced that the Primary Market Corporate Credit Facility, one of several new programs launched to stabilize financial markets in the wake of the coronavirus pandemic, is operational and available for use as of Monday.
The key changes suggested by the panel includes easing registration processes for well-regulated entities, insurance companies, pension funds. It also suggested tweaking rules pertaining to FPI investment limits and reclassifying FPI to foreign direct investment (FDI).
The latest step of RBI on the rupee-dollar swap mechanism will unleash Rs 35,000 crore liquidity in the system, while the credit situation is comfortable, a senior official of RBI source said on Monday. “The liquidity situation is comfortable, the dollar-rupee swap will add over Rs 35,000 crore liquidity into the system and the central bank is monitoring the position of easy credit in the market circulations “, the source said.
A closely watched meeting of the board of the Reserve Bank of India ended this evening with the central bank agreeing to increase liquidity in the open market. The central bank will pump in up to Rs 8,000 crore into the market by purchasing government bonds.