Indian regulatory model likely to be adopted for financial reforms by other countries: Accenture report

As the nations across the world are trapped in reshaping the financial services industry as a key priority in their attempt to revive the global economy, they have evinced interest in framing regulatory models of countries like India, according to a report by the global consulting major Accenture.

The report says that the regulatory models of Canada, India and Spain might become more widely accepted and adopted. On back of higher mandatory liquidity reserves, Canadian banks managed to escape the curse of toxic assets. Likewise, the regulatory framework of India and Spain also mandate for a higher level of liquidity reserves, which helped them emerging stronger in the crunch time.

As compared to banks in developed nations like the US, the UK, Europe and Australia, banks in Brazil, China and India are better capitalised and positioned than most to prevent themselves from being victim of the man made crisis.

Post market mayhem, trends like rethinking regulation are likely to be tabled in countries to resort to recapitalise some institutions, organise mergers of stronger and weaker companies and step up regulatory oversight.

The report also weighed the role of emerging nations in the world economy and recognition by the developed countries for restructuring of the regulatory framework to curb the effects of global slowdown.