Regulatory engagement: A sine qua non

It is time for an engagement strategy document incorporating best practices of other central banks in key markets

A structured regulatory engagement with the banking regulator is essential for policy makers and the industry to meaningfully formulate and transmit policy seamlessly. While the Reserve Bank of India (RBI) interacts with industry bodies and market participants, the second Regulatory Review Authority and its advisory group signalled a paradigm shift to strengthen collaboration. I am outlining some essential elements of stakeholder engagement by regulators in key markets, with whom I had interactions.

United Kingdom: Treasury and regulators are subject to various obligations intended to support stakeholder engagement with the policy-making process, and to help ensure it is rigorous, evidence-based and