New delhi: India’s Financial System has become more resilient and Diverse, Driven by Rapid Economic Growth, And Regulatory Framework Emerging Risks, The Securities and Exchange Board of India (Sebi) Said on Saturday, Citing a Latest Imf-Financial System Stability Assessment (FSSA) Report.
The Markets Regulator said, in a statement, that financial sector in India has shown recovery from various distress episodes of the 2010s and withstood the pandemic cell.
“In terms of evolution of the financial sector landscape, the non-banking financial intermediate intermediate (NBFI) sector has become divese but more interconnected. Have Supricient Aggregate Capital to Support Moderate lending even in Severe Macro-Financial Scenarios, “The Sebi Said, Citing the IMF Report Findings.
On regulation and supervision of NBFCs, the Imf Acknowledded India’s Systematic Approach for Prudential Requirements of NBFCs with Scale based regulatory framework. The imf also appreciated India’s approach on Introduction of Bank-Like Liquidity Coverage Ratio (LCR) for Large NBFCs.
For supervision of banks, the imf suggested strengthening credit risk management through Large Exposure Limits, and Related-Partay Transactions “.
The report further stated that notable improvements include establishing the corporate Debt Market Development Fund (CDMDF), Introducing Swing Pricing, and Liquidity Requirements for Bond Mutal Funds.
The regulatory scope has also been expanded over emerging area as sustainability and investment measures measures for fast-road rights products, according to the ip-for-for.
According to the sebi, the “FSSA REPORT ACKNOWLEDGES That INSURANCE Sector is Strong and Growing, with a significant presence in both life and general insurance. The sector has remaned stable, Supported by better regulations and digital innovations “.
The report noted India’s Progress in Improving Oversight, Risk Management and Governance and Sugges Further Steps Toward Risk-Based Solvensy/Suprevision Framework and Strong GROP SUPERVISION It Acknowledged Transition Plans Towards a Risk-Based Approach in the Insurance Sector. “This Reflects India’s Commitment to Global Best Practices and A Resilient Insurance Sector,” Said the Capital Markets Regulator.
The Financial Sector Assessment Program (FSAP), A Joint Program of the IMF and the World Bank (WB), Undertakes a Comprehensive and in-Deepth Analysis of a Country’s Financial Sector.