They also encompass assessments of liquidity developments and policies, the crisis-management framework, the regulation and supervisory practices. Secondly, assessments of the extent to which financial sector standards and codes are observed make it possible to identify gaps in regulation and transparency, evaluate the overall stability of the financial system, and measure a country’s practices against international benchmarks.
India undertook a comprehensive selfassessment of financial standards and codes some five years ago and this is being reviewed on an ongoing basis.