At FSDC meet, regulators told to keep a watch on financial sector

Officials stress need to strengthen resolution framework for financial institutions

The Financial Stability and Development Council (FSDC), the apex body of sectoral regulators that is headed by Union Finance Minister Nirmala Sitharaman, on Friday stressed the need to keep a continuous watch on the financial sector’s condition.
 
The apex body also emphasised the need for strengthening institutional mechanism for financial stability analysis and framework for resolution of financial institutions and issues related to insolvency and bankruptcy code.
 
Besides, they also underlined issues concerning banks’ exposure to various sectors and data sharing mechanisms of authorities, internationalisation of Indian rupee and pension sector related issues.
 

The 24th meeting was attended by various Reserve Bank of India Governor Shaktikanta Das, Finance Secretary TV Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Tarun Bajaj, Securities and Exchange Board of India (Sebi) Chairman Ajay Tyagi, Insolvency and Bankruptcy Board of India (IBBI) Chairman M S Sahoo, Pension Fund Regulatory and Development Authority (PFRDA) Chairman Supratim Bandyopadhyay, among others.

 
“It was noted that there is a need to keep a continuous vigil by Government and all regulators on the financial conditions,” it said.
 
The meeting deliberated on various mandates of the FSDC like financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion, and macro-prudential supervision of the economy, including the functioning of large conglomerates, the finance ministry said in a statement.
 
The meeting was crucial as it is the first in the current financial year and was held soon after the release of gross domestic product (GDP) numbers of the first quarter, which saw 20 per cent growth against the 24 per cent contraction witnessed in the corresponding quarter last year. The last meeting was held on December 15, 2020.