IMF’s latest report highlights regulatory improvements, better capitalized non-bank lenders, and increased financial access.
India’s financial system has strengthened significantly since 2017, according to the latest Financial System Assessment Program (FSAP) report conducted jointly by the International Monetary Fund (IMF) and the World Bank, reported timesofindia.indiatimes.com.
Stronger Financial Institutions and Regulations
The IMF’s assessment notes that non-banking financial companies (NBFCs) are now better capitalized, enabling them to withstand economic shocks while maintaining moderate lending levels.
Regulatory reforms by the Reserve Bank of India (RBI), including a scale-based framework and liquidity coverage requirements, have contributed to a more stable financial ecosystem.
Expanding Financial Access and Emerging Risks
Public digital infrastructure has played a pivotal role in broadening financial access across India. However, the report emphasizes the need for stronger legal and tax frameworks to ensure continued progress.
While the insurance sector remains stable, the IMF cautions against emerging threats such as climate change and cybersecurity risks, calling for enhanced risk management strategies.
***********************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken a small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, running a news website requires finances. While every contribution, big or small, will make a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com
