march 2015. due to weak capital position of banks and risk aversion on their part, credit growth remained subdued in recent years. however, with incipient sign of improvement in the health of banks, credit growth is picking up. resolution of stressed assets 8. it is now well recognised that an efficient bankruptcy regime is essential for timely resolution and liquidation of stressed companies. the insolvency and bankruptcy code, 2016, ( ibc ) has significantly altered the financial landscape as it provides a market mechanism for time - bound insolvency resolution enabling maximisation of value. the new regime is a paradigm shift in which creditors take control of the assets in contrast to the earlier systems in which debtors remained in possession of the assets till its resolution or liquidation, leading to an improvement in the credit culture of the country. 9. in the wake of the supreme court ’ s order nullifying the reserve bank ’ s circular of february 12, 2018 for resolution of stressed assets, we have issued fresh guidelines yesterday ( june 7, 2019 ). the new guidelines provide a system of strong disincentives in the form of additional provisioning for delay in initiation of resolution or insolvency proceedings. the new framework makes inter - creditor agreements mandatory and provides for a majority decision to prevail. further, wherever necessary, the reserve bank will issue directions to banks for initiation of insolvency proceedings against borrowers for specific defaults so that the momentum towards effective resolution remains uncompromised. it is expected that the revised prudential framework for resolution of stressed assets will sustain the improvements in credit culture that have been ushered in by the efforts of the government and the reserve bank so far, and that, it will go a long way in promoting a strong and resilient financial system in india. non - banking financial companies ( nbfcs ) 10. let me now turn to non - banking financial companies ( nbfcs ). they play an important role in the indian financial system given their unique position in providing complementarity as well as competition to banks. they cater to diverse financial needs of a wide variety of customers, both in urban and rural areas. this sector, with a size of around 16 per cent of the combined balance sheet of scbs, has been growing at a faster pace in recent years. as at end - march 2019, the aggregate crar of nbfc sector was 19. 3 per cent, while the gross npa

subir gokarn : launch of the otc derivatives trade repository inaugural address by dr subir gokarn, deputy governor of the reserve bank of india, at the ccil, mumbai, 9 july 2012. * * * we are gathered here to mark the launch of the otc derivatives trade repository. as you know, in the aftermath of the us sub - prime crisis, improving transparency and reducing counterparty risk in otc derivatives transactions have been two principal themes of discourse in the context of helping create a robust financial market architecture. this would not only reduce the possibility of recurrence of such a crisis in future but also contain the fallout and facilitate timely action by regulators. transparency of otc derivatives markets is now viewed as an essential pre - condition for all other measures to be effective. regulators need comprehensive and timely information in order to effectively regulate, prevent risk build - up and ensure pre - emptive corrective action. similarly, market participants also need to have sufficient knowledge about overall activities and positions in the market to enable them to better assess the potential riskiness of their operations. they can then take appropriate risk management measures contributing to the overall safety of the financial system. the 2009 commitment of g - 20 at pittsburgh is based on this premise and accordingly states, “ all standardized otc derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end - 2012 at the latest. otc derivative contracts should be reported to trade repositories. ” though indian financial markets are relatively sparse in terms of the number and complexity of products as well as varieties of participants, the reserve bank has always been concerned with improving the transparency of the otc derivatives market. the bank had put in place summary reporting in various forms according to the regulatory need in case of all otc derivatives, particularly forex derivatives, much before the onset of the crisis. the bank had even required mandated transaction level reporting much before the importance of transparency for financial safety was widely accepted. it may be recalled that in july 2007, rbi had, through a regulatory mandate, tasked ccil to collect and collate transaction level data for irs. the reporting framework for credit default swaps ( cds ) was put in place from the date of introduction of the instrument itself. the current initiative is another significant step in that direction. its objective is to create a comprehensive repository framework for all otc foreign exchange and interest rate derivatives with phase - wise implementation of the various reporting