The
financial system if at all is found vulnerable, it is because of the
interference of the Government in the functioning of various
regulators. The setting up of Financial stability development council
under the Chairmanship of the FM takes away the powers enjoyed by the
RBI which has done a wonderful job in securing financial stability and
soundness. The interference by the Govt in the regulatory functioning
of RBI is uncalled for unless the Govt has its motives to have control
over the system to its advantage. The caution by the IMF from that
angle is most appropriate and it is for the govt to act to make the
system sound and stable for the long term benefit of the economy and
its people. ( This appeared in Times of India dated 16/01/13)
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