World Bank, IMF laud RBI for tight supervision

The International Monetary Fund (IMF) and the World Bank have commended the Reserve Bank of India (RBI) for its “remarkable progress in strengthening banking supervision”, saying the regulation by the central bank has improved in recent years. The IMF and the World Bank had released two separate main reports of the 2017 India Financial Sector Assessment Programme (FSAP) in December 2017.

In continuation, the IMF and the World Bank on Friday released two detailed assessment reports (DARs) relating to the 2017 India FSAP. The report providing ‘Detailed Assessment of Observance— Basel Core Principles for Effective Banking Supervision’ has been released by the IMF and the World Bank.

The report providing ‘Detailed Assessment of Observance of Clearing Corporation of India Limited (CCIL) Central Counter Party (CCP) and Trade Repository (TR)’ was released by the World Bank.

Market regulator Securities and Exchange Board of India (Sebi) in a statement noted that the DAR on the observance of basel core principles commends the Reserve Bank for the remarkable progress in strengthening banking supervision since the last FSAP.

“It notes that the supervision and regulation by the RBI remain strong and have improved in recent years,” the Sebi said. The DAR states that the system-wide asset quality review (AQR) and the strengthening of prudential regulations in 2015 testify to the authorities’ commitment to transparency and a more accurate recognition of banking risks.