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| The IBA brass headed by chief executive officer H N Sinor and chief economist N Nagarajan will brief the Fund team as to the progress made by the banking sector in the last six months. |
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| This meeting is part of the Article IV consultation by the executive board of the IMF with India. The last consultation was concluded on July 18, 2003. |
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| Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members. |
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| A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. |
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| On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. |
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| At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. |
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| At the last consultation the IMF Directors commended the steady progress made by the country in moving ahead with financial sector reforms. |
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| The IMF welcomed the introduction of risk-based supervision and implementation of a prompt corrective action framework for commercial banks. |
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| It encouraged the introduction of time limits on remedial actions in the latter, so as to increase the framework's effectiveness. |
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| The IMF directors also saw a need to broaden the scope of the market for interest rate derivatives and to tighten the regulatory treatment of state-government guaranteed loans. |
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