Macro-economic vulnerabilities significantly reduced: FSDC

Macro-economic vulnerabilities have significantly reduced on the back of policy initiatives taken by the government, Finance Minister Arun Jaitley and heads of financial sector regulators observed today.
Financial Stability and Development Council (FSDC) comprising regulatory bodies like the Reserve Bank and Sebi took stock of the prevailing domestic and global economic situation here at a meeting headed by Jaitley.
It was observed that "macro-economic vulnerabilities have been reduced significantly in recent months on the back of various policy initiative taken by the government, improvement in growth, declining inflation, recovery in external sector and political stability," said the Finance Ministry in a statement.

FSDC was also apprised of the progress made by the task force set up for creating of Resolution Corporation, Public Debt Management Agency, Financial Data Management Centre and Financial Sector Appellate Tribunal.
During the meeting, Jaitley also launched a MIS portal for monitoring progress of regulators on implementation of the non-legislative recommendations of Financial Sector Legislative Reforms Commission (FSLRC).
FSDC held a comprehensive review of action taken by members during the previous meetings. Today's was the 12th meeting. The last FSDC meeting was held in June last year.

RBI Governor Raghuram Rajan, SEBI Chairman U K Sinha, insurance regulator IRDA Chairman T S Vijayan, pension regulator PFRDA Chairman Hemant G Contractor were among those present at the meeting.

The participants also discussed the progress made regarding implementation of decisions taken on development of corporate bond market and also discussed way forward for development of vibrant, deep and liquid bond market.
In the FSDC sub-committee meeting chaired by RBI Governor last month, capital requirements of the banks and measures to deepen bond markets were discussed.
The sub-committee had also deliberated upon matters related to account aggregation facility, capital requirement of banks and measures to deepen the credit default swap market.
The Reserve Bank informed FSDC about the measures being taken for timely detection of frauds in banks. The council took note of the developments and the suggestions made as regards building effective deterrence through expeditious action.