The Report of the Financial Sector Assessment Programme for India by International Monetary Fund (IMF) makes the following recommendations:
The level of non-performing loans in India remains high and the IMF has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks.
Together with capitalisation, the report asks for resolution and the recognition of Non-performing loans as part of the process of cleaning up the banking system of the non-performing loans,
The report notes that there were some steps that were taken by the authorities to boost the capital buffers in banks and also to improve governance in the state-owned banks that have had some positive impact.
Financial Sector Assessment Programme
The FSAP includes two major components: a financial stability assessment, which is the responsibility of the IMF, and the financial development assessment, the responsibility of the World Bank.
Financial Sector Assessment Programme of the IMF aims to:
To gauge the stability and the soundness of the financial sector.
To assess its potential contribution to growth and development.
The Financial Sector Assessment Program (FSAP) is a comprehensive and in-depth analysis of a country’s financial sector.
No comments:
Post a Comment