Financial Sector Resilience Amid Geopolitics

Mumbai, May 14 (PTI) Financial sector regulators on Thursday discussed key global and domestic macroeconomic developments and ways to enhance resilience through better coordination amid geopolitical frictions.

The Sub-Committee of the Financial Stability and Development Council (FSDC-SC) met in the Reserve Bank office under the chairmanship of Governor Sanjay Malhotra, according to an official statement.

"The FSDC-SC reaffirmed its commitment to enhancing financial sector resilience

through inter-regulatory coordination; and keeping a close watch on emerging challenges, including those from heightened geopolitical frictions," the statement said.


It "deliberated on key global and domestic macroeconomic and financial sector developments, along with emerging issues bearing implications for financial stability," the statement said.

The meeting comes amid turbulent geopolitical developments following the West Asia conflict, which has led to a steep increase in commodity prices and disruptions in supply chains, which are feared to result in some challenges domestically.

The panel also reviewed the progress in several inter-regulatory matters, including simplification of KYC processes and regulatory impact assessment, with an emphasis on enhancing the quality, transparency and accountability of regulatory processes, it said.

The meeting was attended by Sebi chairman Tuhin Kanta Pandey, IRDAI chairman Ajay Seth, PFRDA chairman S Ramann, IFSCA's head K Rajaraman, Meity Secretary S Krishnan, Expenditure Secretary V Vualnam, Chief Economic Advisor V Anantha Nageswaran and all the deputy governors of the Reserve Bank.