http://www.arthapedia.in/index.php?title=Financial_Stability&feed=atom&action=historyFinancial Stability - Revision history2024-03-28T16:44:15ZRevision history for this page on the arthapediaMediaWiki 1.17.0http://www.arthapedia.in/index.php?title=Financial_Stability&diff=2286&oldid=prevArthapedia: /* Contributed by */2015-07-23T10:14:53Z<p><span class="autocomment">Contributed by</span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:sumantrapal@gmail.com sumantrapal@gmail.com]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:sumantrapal@gmail.com sumantrapal@gmail.com]</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:concepts|<del class="diffchange diffchange-inline">Financial Stability</del>]]</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>[[Category:concepts|<ins class="diffchange diffchange-inline">FinancialStability</ins>]]</div></td></tr>
</table>Arthapediahttp://www.arthapedia.in/index.php?title=Financial_Stability&diff=1081&oldid=prevRosemary.a at 06:35, 26 September 20122012-09-26T06:35:52Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Contextually, financial stability in India means</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Contextually, financial stability in India means</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(a) ensuring uninterrupted settlements of financial transactions (both internal and external),  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(a) ensuring uninterrupted settlements of financial transactions (both internal and external),  </div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Three highlighted structural aspects of financial stability are:</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Three highlighted structural aspects of financial stability are:</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>   </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>   </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">i</del>. Vulnerabilities to real sector shocks</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(a)</ins>. Vulnerabilities to real sector shocks</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">ii</del>. Political system stability  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(b)</ins>. Political system stability  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">iii</del>. The size, nature and structure of the economy, level of development and socio political conditions</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(c)</ins>. The size, nature and structure of the economy, level of development and socio political conditions</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The sources of financial disturbances are unpredictable due to increased integration of financial markets. Contagions, progressive opening up of economies to external flows, sharp movements in exchange rates for emerging economies need to resort to borrowing in foreign currencies, all contribute to financial instability. Forces affecting financial stability, include:</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The sources of financial disturbances are unpredictable due to increased integration of financial markets. Contagions, progressive opening up of economies to external flows, sharp movements in exchange rates for emerging economies need to resort to borrowing in foreign currencies, all contribute to financial instability. Forces affecting financial stability, include:</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>a. boom in credit to private sector, both investment and consumption, A particular form of boom and bust cycle is generated by the end of hyperinflation episodes.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>a<ins class="diffchange diffchange-inline">)</ins>. boom in credit to private sector, both investment and consumption, A particular form of boom and bust cycle is generated by the end of hyperinflation episodes.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>b. highly regulated systems have also suffered crises.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>b<ins class="diffchange diffchange-inline">)</ins>. highly regulated systems have also suffered crises.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>c. Direct effects of fiscal difficulties.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>c<ins class="diffchange diffchange-inline">)</ins>. Direct effects of fiscal difficulties.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>d. crisis in one country has a direct effect on economic conditions.  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>d<ins class="diffchange diffchange-inline">)</ins>. crisis in one country has a direct effect on economic conditions.  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>e. Terms of trade shocks and movements in real exchange rates.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>e<ins class="diffchange diffchange-inline">)</ins>. Terms of trade shocks and movements in real exchange rates.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>f. Political instability, unrest, civil conflict.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>f<ins class="diffchange diffchange-inline">)</ins>. Political instability, unrest, civil conflict.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>g. Policy-induced distortions, government influence over public sector banks;</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>g<ins class="diffchange diffchange-inline">)</ins>. Policy-induced distortions, government influence over public sector banks;</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>In financial markets, the herd mentality catches up fast, making markets volatile. There is need to pursue a multifaceted approach towards ensuring financial stability through  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>In financial markets, the herd mentality catches up fast, making markets volatile. There is need to pursue a multifaceted approach towards ensuring financial stability through  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>(<del class="diffchange diffchange-inline">i</del>) payments system oversight,  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(<ins class="diffchange diffchange-inline">a</ins>) payments system oversight,  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>(<del class="diffchange diffchange-inline">ii</del>) contingency planning against market disruption,  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(<ins class="diffchange diffchange-inline">b</ins>) contingency planning against market disruption,  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>(<del class="diffchange diffchange-inline">iii</del>) lender of last resort (LOLR),  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(<ins class="diffchange diffchange-inline">c</ins>) lender of last resort (LOLR),  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>(<del class="diffchange diffchange-inline">iv</del>) share in procedures for financial regulation and  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(<ins class="diffchange diffchange-inline">d</ins>) share in procedures for financial regulation and  </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>(<del class="diffchange diffchange-inline">v</del>) analysis and communication through reports. Overall, a continuous assessment of the health of the financial sector is essential and its ability to withstand various shocks is important.  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(<ins class="diffchange diffchange-inline">e</ins>) analysis and communication through reports. Overall, a continuous assessment of the health of the financial sector is essential and its ability to withstand various shocks is important.  </div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Therefore, the relationship between a regulator and Government must emphasise on:</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Therefore, the relationship between a regulator and Government must emphasise on:</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>a. Operational Autonomy</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>a<ins class="diffchange diffchange-inline">)</ins>. Operational Autonomy</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>b. Harmony  with the government policies, due to dense linkage between fiscal and financial sectors</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>b<ins class="diffchange diffchange-inline">)</ins>. Harmony  with the government policies, due to dense linkage between fiscal and financial sectors</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">(</ins>c<ins class="diffchange diffchange-inline">)</ins>. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>==References==</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>==References==</div></td></tr>
</table>Rosemary.ahttp://www.arthapedia.in/index.php?title=Financial_Stability&diff=1080&oldid=prevRosemary.a at 06:28, 26 September 20122012-09-26T06:28:09Z<p></p>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>The notion of financial stability leads to issues of measurement, issues of choice of instruments to achieve the objective of financial stability and issues on the degree of activism that central banks should adopt in pursuing this objective. Monetary stability leads to financial stability, although, such complementarity hold in the long run, need not hold in the short-run. Monetary stability is an important precondition for financial stability <del class="diffchange diffchange-inline">maintaining low and stable inflation</del>. Reduction in inflation enables inflation expectations to stabilize. Low and stable inflation expectations increase confidence in the domestic financial system. <del class="diffchange diffchange-inline"> </del>A stable macroeconomic environment - with low and stable inflation, sustained growth and low interest rates - can generate excessive optimism about the future economic prospects and often the risks are downplayed. <del class="diffchange diffchange-inline">Macroeconomic </del>stability need not necessarily always place an economy in financial stability, therefore, focused attention to <del class="diffchange diffchange-inline">the objective of maintaining financial stability. Globally, central banks are concerned both price stability and </del>financial stability.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>The notion of financial stability leads to issues of measurement, issues of choice of instruments to achieve the objective of financial stability and issues on the degree of activism that central banks should adopt in pursuing this objective.  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>Monetary stability <ins class="diffchange diffchange-inline">(say maintaining low and stable inflation) </ins>leads to financial stability, although, such complementarity hold in the long run, need not hold in the short-run. Monetary stability is an important precondition for financial stability. Reduction in inflation enables inflation expectations to stabilize. Low and stable inflation expectations increase confidence in the domestic financial system. <ins class="diffchange diffchange-inline">Globally, central banks are concerned with both price stability and financial stability.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">  </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>A stable macroeconomic environment - with low and stable inflation, sustained growth and low interest rates - can generate excessive optimism about the future economic prospects and often the risks are downplayed. <ins class="diffchange diffchange-inline">However, macroeconomic </ins>stability need not necessarily always place an economy in financial stability, therefore, focused attention <ins class="diffchange diffchange-inline">is required </ins>to <ins class="diffchange diffchange-inline">achieve </ins>financial stability.  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Contextually, financial stability in India means</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Contextually, financial stability in India means</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(a) ensuring uninterrupted settlements of financial transactions (both internal and external),  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(a) ensuring uninterrupted settlements of financial transactions (both internal and external),  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(b) maintenance of a level of confidence in the financial system amongst all the participants and stakeholders and  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(b) maintenance of a level of confidence in the financial system amongst all the participants and stakeholders and  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(c) absence of excess volatility that unduly and adversely affects real economic activity.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>(c) absence of excess volatility that unduly and adversely affects real economic activity.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>Three highlighted structural aspects of financial stability</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>Three highlighted structural aspects of financial stability <ins class="diffchange diffchange-inline">are:</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> </ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>i. Vulnerabilities to real sector shocks</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>i. Vulnerabilities to real sector shocks</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>ii. Political system stability  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>ii. Political system stability  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>iii. The size, nature and structure of the economy, level of development and socio political conditions</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>iii. The size, nature and structure of the economy, level of development and socio political conditions</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del style="color: red; font-weight: bold; text-decoration: none;">The sources of financial disturbances are unpredictable due to increased integration of financial markets. Contagions, progressive opening up of economies to external flows, sharp movements in exchange rates for emerging economies need to resort to borrowing in foreign currencies. </del></div></td><td colspan="2"> </td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>Forces affecting financial stability, include:</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">The sources of financial disturbances are unpredictable due to increased integration of financial markets. Contagions, progressive opening up of economies to external flows, sharp movements in exchange rates for emerging economies need to resort to borrowing in foreign currencies, all contribute to financial instability. </ins>Forces affecting financial stability, include:</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>a. boom in credit to private sector, both investment and consumption, A particular form of boom and bust cycle is generated by the end of hyperinflation episodes.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>a. boom in credit to private sector, both investment and consumption, A particular form of boom and bust cycle is generated by the end of hyperinflation episodes.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>b. highly regulated systems have also suffered crises.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>b. highly regulated systems have also suffered crises.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Direct effects of fiscal difficulties.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Direct effects of fiscal difficulties.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>d. crisis in one country has a direct effect on economic conditions.  </div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>d. crisis in one country has a direct effect on economic conditions.  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>e. Terms of trade shocks and movements in real exchange rates.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>e. Terms of trade shocks and movements in real exchange rates.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>f. Political instability, unrest, civil conflict.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>f. Political instability, unrest, civil conflict.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>g. Policy-induced distortions, government influence over public sector banks;</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>g. Policy-induced distortions, government influence over public sector banks;</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>In financial markets, the herd mentality catches up fast, making markets volatile. There is need to pursue a multifaceted approach towards ensuring financial stability through (i) payments system oversight, (ii) contingency planning against market disruption, (iii) lender of last resort (LOLR), (iv) share in procedures for financial regulation and (v) analysis and communication through reports. Overall, a continuous assessment of the health of the financial sector is essential and its ability to withstand various shocks is important.  </div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>In the pursuit of financial stability, effective regulatory and supervisory initiatives along with a calibrated approach to financial sector liberalization <del class="diffchange diffchange-inline">have a </del>critical. The pancha-sutra or five principles (a) cautious and appropriate sequencing of reform measures; (b) introduction of norms that are mutually reinforcing; (c) introduction of complementary reforms across sectors (most importantly, monetary, fiscal and external sector); (d) development of financial institutions; and, (e) development of financial markets. The reforms have aimed at enhancing productivity and efficiency of the financial sector, improving the transparency of operations and made the financial system capable of withstanding idiosyncratic shocks.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>In financial markets, the herd mentality catches up fast, making markets volatile. There is need to pursue a multifaceted approach towards ensuring financial stability through  </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>Challenge to Indian regulators is to enhance efficiency while avoiding instability. This leads to a role for the regulators to adopt <del class="diffchange diffchange-inline">to </del>develop market-oriented financial system while maintaining independence and credibility and accountable to Government which being the ultimate risk-bearer and sovereign in law-making. <del class="diffchange diffchange-inline">The contextual meaning of financial stability in respect of financial market regulations implies:</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">a. Ensuring uninterrupted financial transactions</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(i) payments system oversight,  </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">b. Maintenance of a level of confidence in the financial system amongst all the participants and stakeholders</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">c. Absence of excess volatility  that unduly and adversely affects real economic activity</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(ii) contingency planning against market disruption,  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(iii) lender of last resort (LOLR),  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(iv) share in procedures for financial regulation and  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(v) analysis and communication through reports. Overall, a continuous assessment of the health of the financial sector is essential and its ability to withstand various shocks is important.  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>In the pursuit of financial stability, effective regulatory and supervisory initiatives along with a calibrated approach to financial sector liberalization <ins class="diffchange diffchange-inline">are </ins>critical. The pancha-sutra or five principles <ins class="diffchange diffchange-inline">are </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(a) cautious and appropriate sequencing of reform measures;  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(b) introduction of norms that are mutually reinforcing;  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(c) introduction of complementary reforms across sectors (most importantly, monetary, fiscal and external sector);  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(d) development of financial institutions; and,  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>(e) development of financial markets. The reforms have aimed at enhancing productivity and efficiency of the financial sector, improving the transparency of operations and made the financial system capable of withstanding idiosyncratic shocks.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>Challenge to Indian regulators is to enhance efficiency while avoiding instability. This leads to a role for the regulators to adopt <ins class="diffchange diffchange-inline">/ and </ins>develop market-oriented financial system while maintaining independence and credibility and <ins class="diffchange diffchange-inline">remain </ins>accountable to Government<ins class="diffchange diffchange-inline">, </ins>which being the ultimate risk-bearer and sovereign in law-making.  </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Therefore, the relationship between a regulator and Government must emphasise on:</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Therefore, the relationship between a regulator and Government must emphasise on:</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>a. Operational Autonomy</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>a. Operational Autonomy</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>b. Harmony  with the government policies, due to dense linkage between fiscal and financial sectors</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>b. Harmony  with the government policies, due to dense linkage between fiscal and financial sectors</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
</table>Rosemary.ahttp://www.arthapedia.in/index.php?title=Financial_Stability&diff=1063&oldid=prevSumantrapal at 06:40, 30 June 20122012-06-30T06:40:27Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:sumantrapal@gmail.com sumantrapal@gmail.com]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>*Email- [mailto:sumantrapal@gmail.com sumantrapal@gmail.com]</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:concepts|<del class="diffchange diffchange-inline">Swavalamban</del>]]</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>[[Category:concepts|<ins class="diffchange diffchange-inline">Financial Stability</ins>]]</div></td></tr>
</table>Sumantrapalhttp://www.arthapedia.in/index.php?title=Financial_Stability&diff=1062&oldid=prevSumantrapal at 06:39, 30 June 20122012-06-30T06:39:39Z<p></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>References<del class="diffchange diffchange-inline">:</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">==</ins>References<ins class="diffchange diffchange-inline">==</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>1. [Financial Stability: Indian Experience][http://www.bis.org/review/r040713c.pdf]: Dr. Y V Reddy( 2004)</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>1. [Financial Stability: Indian Experience][http://www.bis.org/review/r040713c.pdf]: Dr. Y V Reddy( 2004)</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>2. [The pursuit of financial stability][http://www.bis.org/review/r050217i.pdf]: Dr. K J Udeshi, Deputy Governor (2005)</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>2. [The pursuit of financial stability][http://www.bis.org/review/r050217i.pdf]: Dr. K J Udeshi, Deputy Governor (2005)</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">==Contributed by==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">* [http://www.ies.gov.in/myaccount-profile-view.php?memid=286 Sumantra Pal, IES(2001)]</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">*Email- [mailto:sumantrapal@gmail.com sumantrapal@gmail.com]</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[[Category:concepts|Swavalamban]]</ins></div></td></tr>
</table>Sumantrapalhttp://www.arthapedia.in/index.php?title=Financial_Stability&diff=1061&oldid=prevSumantrapal: Created page with "The notion of financial stability leads to issues of measurement, issues of choice of instruments to achieve the objective of financial stability and issues on the degree of acti..."2012-06-30T06:30:45Z<p>Created page with "The notion of financial stability leads to issues of measurement, issues of choice of instruments to achieve the objective of financial stability and issues on the degree of acti..."</p>
<p><b>New concept</b></p><div>The notion of financial stability leads to issues of measurement, issues of choice of instruments to achieve the objective of financial stability and issues on the degree of activism that central banks should adopt in pursuing this objective. Monetary stability leads to financial stability, although, such complementarity hold in the long run, need not hold in the short-run. Monetary stability is an important precondition for financial stability maintaining low and stable inflation. Reduction in inflation enables inflation expectations to stabilize. Low and stable inflation expectations increase confidence in the domestic financial system. A stable macroeconomic environment - with low and stable inflation, sustained growth and low interest rates - can generate excessive optimism about the future economic prospects and often the risks are downplayed. Macroeconomic stability need not necessarily always place an economy in financial stability, therefore, focused attention to the objective of maintaining financial stability. Globally, central banks are concerned both price stability and financial stability.<br />
Contextually, financial stability in India means<br />
(a) ensuring uninterrupted settlements of financial transactions (both internal and external), <br />
(b) maintenance of a level of confidence in the financial system amongst all the participants and stakeholders and <br />
(c) absence of excess volatility that unduly and adversely affects real economic activity.<br />
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Three highlighted structural aspects of financial stability<br />
i. Vulnerabilities to real sector shocks<br />
ii. Political system stability <br />
iii. The size, nature and structure of the economy, level of development and socio political conditions<br />
The sources of financial disturbances are unpredictable due to increased integration of financial markets. Contagions, progressive opening up of economies to external flows, sharp movements in exchange rates for emerging economies need to resort to borrowing in foreign currencies. <br />
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Forces affecting financial stability, include:<br />
a. boom in credit to private sector, both investment and consumption, A particular form of boom and bust cycle is generated by the end of hyperinflation episodes.<br />
b. highly regulated systems have also suffered crises.<br />
c. Direct effects of fiscal difficulties.<br />
d. crisis in one country has a direct effect on economic conditions. <br />
e. Terms of trade shocks and movements in real exchange rates.<br />
f. Political instability, unrest, civil conflict.<br />
g. Policy-induced distortions, government influence over public sector banks;<br />
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In financial markets, the herd mentality catches up fast, making markets volatile. There is need to pursue a multifaceted approach towards ensuring financial stability through (i) payments system oversight, (ii) contingency planning against market disruption, (iii) lender of last resort (LOLR), (iv) share in procedures for financial regulation and (v) analysis and communication through reports. Overall, a continuous assessment of the health of the financial sector is essential and its ability to withstand various shocks is important. <br />
In the pursuit of financial stability, effective regulatory and supervisory initiatives along with a calibrated approach to financial sector liberalization have a critical. The pancha-sutra or five principles (a) cautious and appropriate sequencing of reform measures; (b) introduction of norms that are mutually reinforcing; (c) introduction of complementary reforms across sectors (most importantly, monetary, fiscal and external sector); (d) development of financial institutions; and, (e) development of financial markets. The reforms have aimed at enhancing productivity and efficiency of the financial sector, improving the transparency of operations and made the financial system capable of withstanding idiosyncratic shocks.<br />
Challenge to Indian regulators is to enhance efficiency while avoiding instability. This leads to a role for the regulators to adopt to develop market-oriented financial system while maintaining independence and credibility and accountable to Government which being the ultimate risk-bearer and sovereign in law-making. The contextual meaning of financial stability in respect of financial market regulations implies:<br />
a. Ensuring uninterrupted financial transactions<br />
b. Maintenance of a level of confidence in the financial system amongst all the participants and stakeholders<br />
c. Absence of excess volatility that unduly and adversely affects real economic activity<br />
Therefore, the relationship between a regulator and Government must emphasise on:<br />
a. Operational Autonomy<br />
b. Harmony with the government policies, due to dense linkage between fiscal and financial sectors<br />
c. Coordination with government in bringing about structural changes in respect of public ownership and legislative framework.<br />
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References:<br />
1. [Financial Stability: Indian Experience][http://www.bis.org/review/r040713c.pdf]: Dr. Y V Reddy( 2004)<br />
2. [The pursuit of financial stability][http://www.bis.org/review/r050217i.pdf]: Dr. K J Udeshi, Deputy Governor (2005)</div>Sumantrapal