ID :
126640
Tue, 06/08/2010 - 11:27
Auther :
Shortlink :
https://oananews.org//node/126640
The shortlink copeid
G-20 ministers back India's proposal on bank regulation: FM
New Delhi, June 7 (PTI) India's proposal to regulate
banks instead of imposing a tax to fund future bailouts was
"by and large accepted" at the recently concluded meeting of
G-20 Finance Ministers in South Korea.
Finance Minister Pranab Mukherjee, who returned from
Busan Sunday, said here that India had suggested to the rich
nations that it was better to regulate banks through policy
instruments like the Cash Reserve Ratio (CRR) rather than
imposing a tax.
CRR is the portion of deposits that banks are required
to keep with the central bank.
"On the financial regulation, we are not in favour of
having taxation on the banks. We suggested that ultimately you
please take it up through the regulatory route...By and large
it was accepted," he said.
Mukherjee advised European and American policymakers to
follow regulatory mechanism on the lines of the Indian banking
system.
India, Australia and Canada are opposed to the proposal
to tax banks to fund the cost of future bailouts and financial
institutions while the European Union, the US, and Britain are
in its favour.
Referring to the risks that the crisis in Greece could
pose to the global economy, the Finance Minister said, "It is
Europe's responsibility to contain the contagian...because
faster recovery in Europe is essential for the developing
countries both for FDI and exports."
Europe accounts for 20-22 per cent of India's exports
of about USD 176 billion.
Mukherjee conveyed it to the Finance Ministers and the
chiefs of the central banks of the 20 most influential
countries in the world that the global recovery was still
fragile.
"We analysed the overall global financial situation,
and in that context I gave my perception that still the
recovery is fragile. In between, the events in the euro zone,
particularly the crisis in Greece, have taken place," he said.
The G-20 Finance Ministers meeting took place weeks
ahead of the Summit of the grouping, which will be attended by
Prime Minister Manmohan Singh in Canada. PTI
banks instead of imposing a tax to fund future bailouts was
"by and large accepted" at the recently concluded meeting of
G-20 Finance Ministers in South Korea.
Finance Minister Pranab Mukherjee, who returned from
Busan Sunday, said here that India had suggested to the rich
nations that it was better to regulate banks through policy
instruments like the Cash Reserve Ratio (CRR) rather than
imposing a tax.
CRR is the portion of deposits that banks are required
to keep with the central bank.
"On the financial regulation, we are not in favour of
having taxation on the banks. We suggested that ultimately you
please take it up through the regulatory route...By and large
it was accepted," he said.
Mukherjee advised European and American policymakers to
follow regulatory mechanism on the lines of the Indian banking
system.
India, Australia and Canada are opposed to the proposal
to tax banks to fund the cost of future bailouts and financial
institutions while the European Union, the US, and Britain are
in its favour.
Referring to the risks that the crisis in Greece could
pose to the global economy, the Finance Minister said, "It is
Europe's responsibility to contain the contagian...because
faster recovery in Europe is essential for the developing
countries both for FDI and exports."
Europe accounts for 20-22 per cent of India's exports
of about USD 176 billion.
Mukherjee conveyed it to the Finance Ministers and the
chiefs of the central banks of the 20 most influential
countries in the world that the global recovery was still
fragile.
"We analysed the overall global financial situation,
and in that context I gave my perception that still the
recovery is fragile. In between, the events in the euro zone,
particularly the crisis in Greece, have taken place," he said.
The G-20 Finance Ministers meeting took place weeks
ahead of the Summit of the grouping, which will be attended by
Prime Minister Manmohan Singh in Canada. PTI
