The Financial Stability Board (FSB), an international body for global financial system, has placed India in the league of countries that are ‘compliant or largely compliant’ on implementation of priority area reforms.
Ahead of the G20 Summit in Germany to be attended by Prime Minister, Narendra Modi, among other world leaders, the FSB yesterday submitted its status report on progress in financial regulatory reforms in various jurisdictions, including India.
The report listed India as a ‘compliant’ jurisdiction with regard to Basel III reforms in risk-based capital and as ’largely compliant’ on liquidity coverage ratio.
Other countries that have been found to be ‘compliant or largely compliant’ on these metrics include Argentina, Australia, Brazil, Canada, China, Hong Kong, Indonesia, Japan, Mexico, South Korea, Russia, Singapore, South Africa, Switzerland, Turkey and the US.
At the same time, France, Germany, Italy, the Netherlands, Spain and the UK have been found to be ’materially non-compliant’ on at least one parameter.
With regard to the Net Stable Funding Ratio (NSFR), India figured among the countries where “final rule published but not in force, or draft regulation published“.
On compensation-related reforms, India is among the jurisdictions where “all except a few (three or less) FSB Principles and Standards implemented”, as per the FSB report.
On trade reporting in the over-the-counter derivatives market, India was among the countries where necessary regulatory framework was being implemented.
On shadow banking, the FSB report named India among the jurisdictions where the final implementation measures are in force for valuation, liquidity management and stable net asset for monetary market funds.
The final adoption measures were taken for implementing an incentive alignment regime and disclosing requirements on securitisation
