e   rit       ar et in ndia           14.31
     IMF-World Bank Financial Stability Assessment                            BCBS®20and IMF21, India is actively participating
     Programme (FSAP) was conducted for India in                              in post-crisis reforms of the international
     January 2013 which assessed Indian financial                             regulatory and supervisory framework under
     system in relation to the highest international                          the aegis of the G20. India remains committed
     standards. The assessment recognises that the                            to adoption of international standards and best
     Indian financial system remained largely stable                          practices, in a phased manner and calibrated to
     on account of a sound regulatory and supervisory                         local conditions, wherever necessary, as it is a
     regime. However, the assessment identifies some                          country characterised by complex and diverse
                                                                              socio-political and economic conditions.
     gaps in18 —
           (i) International and domestic supervisory                         finAnciAl Action tAsk force (fAtf)
                 information sharing and co-operation;
                                                                              The FATF is an inter-governmental policy making
         (ii) Consolidated supervision of financial                           body that has a ministerial mandate to establish
                 conglomerates; and                                           international standards for combating money
        (iii) Some limits on the de jure independence                         laundering and terrorist financing. India joined the
                 of the regulators (RBI and IRDA).                            FATF as its 34th member in June 2010. At present,
          Despite having reservations on few issues,                          the FATF has 36 members comprising 34 countries
     overall the Indian authorities expect the FSAP                           and two organisations (European Union and Gulf
     exercise to play a significant role in shaping India’s                   Cooperation Council).
     post-crisis initiatives to strengthen the regulatory                       20.  The BCBS (Basel Committee on Banking Supervision)
     and supervisory architecture based on the                                       provides a forum for regular cooperation on banking
                                                                                     supervisory matters. The Committee’s members, today,
     evolving international consensus as well as careful                             come from 27 nations including India. The present
                                                                                     Chairman of the Committee is Stefan Ingves, Governor of
     examination of their relevance in the India-                                    Sveriges Riksbank. It is located at the Bank for International
     specific context. As a member of the FSB19 ,                                    Settlements (BIS) in Basel, Switzerland.
                                                                                           Its objective is to enhance understanding of key
       18.    RBI, 16th January, 2013                                                supervisory issues and improve the quality of banking
       19.    The FSB was established in April 2009 as the successor                 supervision worldwide. It seeks to do so by exchanging
              to the Financial Stability Forum (FSF). The FSF was                    information on national supervisory issues, approaches
              founded in 1999 by the G–7 for enhancing cooperation                   and techniques, with a view to promoting common
              among the various national and international supervisory               understanding. At times, the Committee uses this common
              bodies and international financial institutions so as to               understanding to develop guidelines and supervisory
              promote sta ility in the international financial system. n             standards in areas where they are considered desirable.
              November 2008, the leaders of the G–20 countries called                In this regard, the Committee is best known for its
              for a larger membership of the FSF. As announced in the                international standards on Capital Adequacy (i.e Basel I,
              G–20 Leaders Summit of April 2009, the expanded FSF                    Basel II and Basel III, by now); the Core Principles for
              was re-established as the Financial Stability Board (FSB)              Effective Banking Supervision; and the Concordat on
              with a roadened mandate to promote financial sta ility.                cross-border banking supervision.
              The FSB is chaired by Mark Carney, Governor of the Bank                     The Committee encourages contacts and cooperation
              of Canada. Its secretariat is located in Basel, Switzerland,           among its members and other banking supervisory
              and hosted by the Bank for International Settlements.                  authorities. It circulates to supervisors throughout the
                    Its objective is to coordinate at the international level        world both published and unpublished papers providing
              the wor of national financial authorities and international            guidance on banking supervisory matters. Contacts have
              standard setting bodies and to develop and promote the                 been further strengthened by an International Conference
              implementation of effective regulatory, supervisory and                of Banking Supervisors (ICBS) which takes place every
              other financial sector policies. Source: Financial Stability           two years. Source: BIS, Basel, Switzerlad].
              Board Secretariat, Bank for International Settlements,            21.  See Chapter 16 for detailed discussion on the IMF
              Basel , Switzerland].                                                  (International Monetary Fund).