G-20 Finance Ministers Support India's Proposal On Bank Regulation.

India’s proposal to regulate banks rather than imposing a tax to fund future bailouts was largely accepted at the recent meeting of G-20 Finance Ministers in Busan, South Korea.
 
Finance Minister Pranab Mukherjee said India had suggested that it was better to regulate banks through policy instruments like the Cash Reserve Ratio (CRR) rather than imposing a tax. And, the proposal was accepted by almost all the group members.
 
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 suggested the European and American policymakers to follow regulatory mechanism of the Indian banking system. However, some of the rich nations like the US, Britain and the European Union are in favour of taxingbanks to fund the future bailouts.
 
On the context of crisis in Greece, 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."
 
Mukherjee also spoke about the fragile situation of the current global economy.
 
"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," said theFinance Minister.
 
The G-20 Summit will be held from June 26-27 in Canada.



Source :- india-server.com