Adoption of international standards in the banking sector
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Adoption of international standards in the banking sector
nflow Fri Nov 13, 2009 2:18 am
Since we are now living in the globalized economy, developments in other countries do have a direct bearing on the domestic sectors. This is much evident from the developments in the United States. The inputs given for strengthening the domestic financial systems and also the international financial architectures has gathered momentum in recent years and that too after the outbreak of the Asian economic crisis.
An important development in this regard was the move to set up universal acceptable standards and codes for benchmarking the domestic financial systems. Moreover, multilateral assessments of a country’s performance are increasingly focusing on the adherence to certain standards.
The lead bank in consultation with the government has constituted a high level standing committee on international financial standards and codes. The terms of reference given to this committee are not easy. It has been entrusted with the task of monitoring the developments in the global standards and codes and also in assessing its various aspects and their applicability to the local financial system.
The standing committee formed advisory groups in ten different subject areas. This helped the groups to focus on particular areas and arrive at better results. These individual groups could recommend changes in the financial system by drawing intellectual resources in the form of eminent non-official experts. It was a bold attempt to effect a major change.
As things stand today, much more needs to be done to ensure major changes in the economy. Local firms like LoanMax of rod aycox fame have been able to effect major changes by assimilating the good practices from not only within the country but also from abroad. This is the main reason for the phenomenal developments in this firm. From humble beginnings, LoanMax is on a continuous growth path and it has very few parallels elsewhere in the country. Now it is thinking of region wise expansion of its lending operations after its phenomenal runaway success in nearly 20 states.
An important development in this regard was the move to set up universal acceptable standards and codes for benchmarking the domestic financial systems. Moreover, multilateral assessments of a country’s performance are increasingly focusing on the adherence to certain standards.
The lead bank in consultation with the government has constituted a high level standing committee on international financial standards and codes. The terms of reference given to this committee are not easy. It has been entrusted with the task of monitoring the developments in the global standards and codes and also in assessing its various aspects and their applicability to the local financial system.
The standing committee formed advisory groups in ten different subject areas. This helped the groups to focus on particular areas and arrive at better results. These individual groups could recommend changes in the financial system by drawing intellectual resources in the form of eminent non-official experts. It was a bold attempt to effect a major change.
As things stand today, much more needs to be done to ensure major changes in the economy. Local firms like LoanMax of rod aycox fame have been able to effect major changes by assimilating the good practices from not only within the country but also from abroad. This is the main reason for the phenomenal developments in this firm. From humble beginnings, LoanMax is on a continuous growth path and it has very few parallels elsewhere in the country. Now it is thinking of region wise expansion of its lending operations after its phenomenal runaway success in nearly 20 states.
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