Then, Mr.Dogra started to focus on India, rather than the whole world in general. He talked about the credit crisis in India. The withdrawal of funds by foreign investors and the fact that commercial credit had dried up in India had contributed drastically to the credit crisis. He also mentioned how the Indian scenario was different from the world’s big picture during the credit crisis. Some of the key differences he talked about were: Absence of subprime loans, credit default swaps, easy money conditions and the hold & distribute policy. Further, he explained what India’s approach was in trying to handle the credit crisis. Banks in India were subjected to prudential regulation, asset liability management guidelines were shared, base II framework and dynamic provisioning were introduced. The NBFCs (Non-Banking Finance Company) also tightened the regulations and suspensions to face the credit crisis.

            Mr.Dogra concluded his session with his thoughts on how transparency of the ratings can be improved. Half yearly audits made compulsory, Default studies to be publicized, latest ratings and movement in ratings, clearly indicative rating symbols, disclosure about complexity levels and unsolicited credit ratings to explicitly be indicated were some of his views on improving transparency of the ratings.