Finance Minister Mr.
Pranab Mukherjee has said that financial stability has become an
integral part of policy planning across the world, in the post-crisis
period. Speaking at the inauguration of the 6th International 6th
International Conference on Banking & Finance, organized by the Indian
Merchants’ Chamber and the Institute of Chartered Accountants of India,
in Mumbai today, Mr. Mukherjee said the greatest challenge now is to
evolve circumstances to maintain the growth momentum. “A sound and
resilient banking sector, well-functioning financial markets, robust
liquidity management and payment and settlement infrastructure are the
pre-requisites for financial stability” he added.
The Finance Minister said several measures have been suggested to
enhance the resilience of the global financial system to support the
development path. These include enhancing transparency, strengthening
risk management frameworks, refining regulatory mechanism, among others.
Mr. Mukherjee informed that gathering of bankers, investment consultants
and corporate that the The Financial Stability Report for December, 2011
brought out by the Reserve Bank of India shows that the domestic
financial system remains robust. He said the Government is committed to
ensure the requisite level of capitalization of Public Sector Banks (PSBs).
The Finance Minister, however, cautioned that if GDP growth slows down,
there could be some downstream impact on asset quality of banks.
The Government has infused more than Rs. 20,000 crore in 2010-11 and Rs
12,000 crore in 2011-12 in various PSBs in order to maintain a minimum
Tier-I CRAR at 8 per cent and also to increase the Government of India
holding in PSBs.