. the varying emphasis on these objectives at different points in time has led rbi to deploy different policy tools as appropriate. we must recognise that nbfc regulation has undergone certain fundamental changes in recent years. 10. let me outline five of these most significant changes in brief ( i ). first and foremost, in line with rbi ’ s emphasis on ownership - neutral regulations, government owned nbfcs have been brought under the purview of prudential regulation since may 2018. considering that government owned nbfcs account for more than one - third of the sector, predominantly in infrastructure financing, this is a significant change. ( ii ). second, considering the recent turmoil some nbfcs had to face because of liquidity stress, the criticality of sound liquidity risk management by nbfcs has been reinforced with the introduction of the liquidity risk management framework for nbfcs with asset size above rs. 100 crore. all nbfcs, irrespective of size are encouraged to follow the framework. the guidelines emphasize the ‘ principles of sound liquidity risk management and supervision ’ published by basel committee on banking supervision. the framework expects the boards of nbfcs to take an active role in the management of liquidity risk and deploy internal monitoring tools suitable to their business profile. more importantly, the regulations have devised a simplified and tailored liquidity coverage ratio ( lcr ) meant for large nbfcs. it would prepare large nbfcs to effectively meet cash outflows even under severe liquidity stress scenarios over a 30 - day horizon. no doubt, maintaining adequate high - quality liquidity assets would have repercussion on the overall yields of nbfcs, but the regulation is commensurate with the need to mitigate risks associated with maturity / liquidity transformation the nbfcs engage in. ( iii ). the third important development is in connection with fintech based product delivery. it is now well recognised that non - banking financial sector would be a fertile ground for technology - based experimentation in financial products and services. regulations have sought to create a conducive environment in this regard. for example, the timely introduction of guidelines for p2p lending platforms has ensured orderly growth of the segment anchored in high standards of prudence. those have made lending platforms a neutral meeting place for lenders and borrowers and keeping them insulated from handling of funds involved in the underlying transactions. regulations have brought down risks while creating the right environment for legitimate

that day. in contrast, libor submitters were asked about where they thought their own bank ’ s cost of funds was that day. debelle g ( 2015 ), ‘ benchmarks ’, address to bloomberg summit, sydney, 18 november. see financial stability board ( 2014 ), ‘ reforming major interest rate benchmarks ’, july, available at < http : / / www. financialstabilityboard. org / wp - content / uploads / r _ 140722. pdf > ; and financial stability board ( 2015 ), ‘ progress in reforming major interest rate benchmarks ’, interim report on implementation of july fsb recommendations, july. available at < http : / / www. financialstabilityboard. org / wpcontent / uploads / ossg - interest - rate - benchmarks - progress - report - july - 2015. pdf >. see council of financial regulators ( 2015 ), ‘ the evolution of the bbsw methodology ’, consultation paper, october. available at < http : / / www. cfr. gov. au / publications / consultations / evolution - of - the - bbsw - methodology / >. see australian securities & investments commission ( 2015 ), ‘ report 440 financial benchmarks ’, july. available at < http : / / download. asic. gov. au / media / 3285136 / rep440 - published - 8 - july - 2015. pdf >. bis central bankers ’ speeches in response to the prospect of a large number of the participants on the submission panel no longer being willing to provide submissions, the calculation of bbsw was reformed in 2013 in line with the iosco principles for financial benchmarks, which were issued in july 2013. 5 since 2013, the australian financial markets association ( afma ) has calculated bbsw benchmark rates as the midpoint of the ( nationally ) observed best bid and best offer ( nbbo ) for prime bank eligible securities, which are bank accepted bills and negotiable certificates of deposit ( ncds ). currently, the prime banks are the four major australian banks. the rate set process uses live and executable bid and offer prices sourced from interbank trading platforms approved by afma, these platforms are currently icap, tullett prebon and yieldbroker. the bids and offers are sourced at three points in time around 10. 00 am each day. while the outstanding stock of bills and ncds issued by