-SBI urges single regulator for home loans.
Global Banking News - 20 May 2013
State Bank of India (NSE: SBI) has suggested that a single regulator oversee home loans in the nation.
The bank's chairman, Pratip Chaudhuri, said that a single regulator would help remove the regulatory arbitrage currently existing between banks and housing finance companies. Currently, there are separate regulators.
The chairman said, 'I see no justification for having separate regulators for home loans. Perhaps, the objective would be better served with RBI itself becoming the sole regulator for all loans, including home loans. In no other country do we have different regulators for different verticals such as industrial loans, home loans and vehicle loans. Having more than one regulator for similar activities sometimes leads to conflict of interest and gives rise to certain regulatory arbitrage.'
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