2013年-IMF国际货币组织全球_India_Financial_System_Stability_Assessment_Update_117页_1mb

India: Financial System Stability Assessment Update Summary

Core Content

This document is an update to the Financial Sector Assessment Program (FSAP) for India, prepared by the IMF and World Bank staff teams in February 2012, based on assessments conducted in June and October 2011, and further discussed during the Article IV consultation in January 2012. It provides an overview of India's financial system stability, regulatory framework, and key recommendations to enhance resilience and efficiency.

Main Findings

1. Financial System Progress and Risks

• India has made significant progress in developing a stable financial system since the 1990s liberalization.
• The system has weathered the global financial crisis well due to strong balance sheets, profitability, and a robust regulatory framework.
• However, financial sector vulnerabilities are building up, particularly in the context of a more complex and interconnected system.
• Key near-term risks include a worsening of bank asset quality and renewed pressures on systemic liquidity.
• Stress tests indicate that the banking system is resilient to adverse shocks due to high-quality asset buffers.

2. Role of the State and Capital Misallocation

• The state's prominent role in the financial sector contributes to fiscal contingent liabilities and risks of capital misallocation.
• Reducing mandatory holdings of government securities by financial institutions and allowing greater access to private capital (domestic and foreign) would enhance the financial sector's ability to channel funds to productive activities.
• This would support sustained economic growth and reduce constraints on the financial system.

3. Regulatory and Supervisory Framework

• The regulatory and supervisory regime for banks, insurance, and securities markets is largely in compliance with international standards.
• Gaps remain, particularly in the de jure independence of regulatory agencies, consolidated supervision of financial conglomerates, and prudential regulations.
• Areas for improvement include:
  • Reducing large exposures and related-party lending limits in banks.
  • Strengthening valuation and solvency requirements in insurance.
  • Enhancing monitoring of compliance with reporting, auditing, and accounting standards for securities issuers.
  • Improving mechanisms for criminal enforcement in securities regulation.

4. Financial System Complexity and Interlinkages

• The financial system is becoming more complex with increasing interlinkages across institutions, markets, and borders.
• Conglomerate structures are growing, and a framework for consolidated supervision is still under development.
• Continued improvements in regulation and supervision are necessary to avoid new vulnerabilities.

Key Recommendations

1. Addressing System-Wide Risks

• Enhance RBI monitoring of corporate indebtedness, refinancing risk, and foreign exchange exposures.
• Improve performance and financial strength of public financial institutions through full supervision and regulation.
• Tighten the definition of large and related-party concentration and gradually reduce exposure limits to align with international practices.

2. Strengthening Financial Sector Oversight

• Develop formal statutory basis for regulatory autonomy to ensure independence.
• Strengthen oversight of overseas operations through MOUs, onsite inspections, and supervisory colleges.
• Enhance specialized expertise in the supervision function by accreditation and retention of skilled personnel.
• Improve coordination and information sharing among domestic supervisors to avoid regulatory gaps and facilitate crisis response.

3. Systemic Liquidity and Crisis Management

• Announce a timetable for the gradual reduction of the Statutory Liquidity Ratio (SLR) and review the use of the Hold to Maturity (HTM) category.
• Strengthen resolution tools for nonviable entities and improve contingency planning for insurance and payment systems.
• Develop arrangements to manage major disruptions in the financial system.

4. Broadening Markets and Services

• Ease investment directives and limits to encourage institutional investors to participate in corporate and infrastructure bonds.
• Consider further easing restrictions on bond market investments by foreign institutional investors (FIIs).
• Use capital markets to refinance infrastructure loans, which would reduce pressures on public banks.

5. Financial Markets Infrastructure

• Require CCPs to strengthen liquidity risk management procedures to cover losses in case of major participant failure.
• Consider replacing the commercial bank settlement model for corporate securities and derivatives with a central bank settlement model.
• Enact a comprehensive modern corporate insolvency law and upgrade the SARFAESI Act to cover unincorporated businesses.

Conclusion

India's financial system has shown resilience and progress, but challenges remain in terms of stability and efficiency. The system's complexity and state involvement require continued regulatory improvements and oversight enhancements. The recommendations focus on reducing vulnerabilities, promoting market development, and strengthening crisis management frameworks. The document emphasizes the need for a more independent and effective regulatory environment to support sustainable growth and financial stability.