About Financial Sector Assessment (FSA) Report:
- It is published by the World Bank.
- Key highlights of the Report:
- India’s financial system has become more resilient, diversified, and inclusive.
- It acknowledges that financial sector reforms helped India recover from various distress episodes of the 2010s as well as the pandemic.
- India's 'world class' digital public infrastructure and government programmes have significantly improved access to a wider range of financial services for men and women.
- WB welcomed the scale-based regulation for NBFCs which recognises the different needs of this diverse industry.
- India’s capital markets(equity, government bonds and corporate bonds) have increased from 144 percent to about 175 percent of GDP since the last Financial Sector Assessment Program.
What is the Financial Sector Assessment Program?
- It is a joint program of the International Monetary Fund (IMF) and World Bank established in 1999.
- It is a comprehensive and in-depth assessment of a country’s financial sector.
- FSAPs in advanced economies are conducted with a focus on assessing the resilience of the financial sector, the quality of the regulatory and supervisory framework, and the capacity to manage and resolve financial crises.
