WP/07/251 Capital Account Convertibility and Risk Management in India Amadou N. R. Sy © 2007 internationalist Monetary Fund WP/07/251 IMF Working Paper Monetary and Capital Markets department Capital Account Convertibility and Risk Management in India ready by Amadou N. R. Sy1 Authorized for distribution by Udaibir S. Das October 2007 abstraction This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working written document describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper takes a close set(predicate) look at the prudential and restrictive measures needed to pay off Indias financial system to manage the encounters arising from fuller seat of government account convertibility (FCAC). The paper contributes to the debate on FCAC in devil ways. First, it reviews the potential and existing financial stability challenges to FCAC in India. heartbeat it studies how prudential regulation and supervision is addressing these challenges.
The main conclusion is that regulatory and supervisory measures alone are not enough and testament need to be complemented by improvements in Indian banks risk management and further development of the domestic capital markets. JEL salmagundi Numbers: F30, F41, F42, G21 Keywords: India, capital account, convertibility, risk management Authors E-Mail Address: asy@imf.org The author wishes to thank Wanda Tseng, Ananthakrishnan Prasad, Abdessatar Ouanès, Charles Kramer, Aditya Narain, and RBI supply for their useful suggestions or comments. A version of this paper is extravert in The Analyst, Institute of Chartered Financial Analysts of India. 1 2 Contents Page Glossary .....................................................................................................................................3 I. Introduction... If you need to get a full essay, order it on our website:
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Nice post! Capital account convertibility may encourage arbitrage. The exploitation of prevailed differential interest or exchange rate would become quite common. Even the individual depositors can make most use of those opportunities that would place Indian currency in high volatile category. You can read more information about capital accounts, just Click Here.
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