Government, financial sector regulators pitch for a dynamic system for early stress indicators for economy
The center, along with financial sector regulators, emphasized the need to develop a system of early warning indicators for the economy. The government simultaneously emphasized that the Indian economy and financial sector are well protected and that there is no spillover effect from The failure of American banks.
These issues were discussed at a meeting of the Financial Stability and Development Board (FSDC) chaired by Finance Minister Nirmala Sitharaman on monday. A great consensus was reached at the meeting to run a special campaign to help people get unclaimed deposits, shares and dividends.
Briefing reporters after the meeting, Economic Affairs Minister Ajay Seth said the early warning system for the entire economy may be in line with the RBI’s indicators to identify pressure on banks.
“That’s one set of indicators. There should be a broad set of indicators that capture information from the financial markets, global markets and the economy. It develops a system for getting a sense of stress. The idea is to identify stress early on, before it becomes salient and gets into a sticky situation” .
Speaking about the strength of the financial sector, especially in the wake of problems with some banks in the US, he said, “We see that the global financial situation is horrendous, but at the same time, the Indian economy and financial sector are well protected and well regulated. Of course we have to be careful and Be vigilant.” Asked if the file extension Silicon Valley Bank and Signature Bank Failed and the Credit Suisse’s liquidity pressures Discussed, he said it wasn’t specifically brought up, but there aren’t any spillovers.
Also read: More dominos waiting to fall in US banking: Aswath Damodaran
special drive
During the meeting, the Minister of Finance advised all regulators to launch a special campaign to facilitate the settlement of deposits and unclaimed claims in the financial sector across all sectors, such as bank deposits, stocks, dividends, mutual funds, insurance, etc. That special efforts will be made in those cases where the candidate’s details are available but the candidates are not aware of it. “Each regulator should take action until the candidate details are available. To communicate until the contact details are available and these claims are settled,” said Seth.
G sec
Seth also reports that the effort is to have a smooth G Sec experience with the technology. “Using technology, how can a seamless experience be offered to potential investors, whether they come through the Reserve Bank of India (RBI) infrastructure, the market infrastructure route, or the SEBI infrastructure route. This was not possible until now, but today, with technology became possible.”