The Central Bank is to set up a ‘Financial System Stability Advisory Council’ to receive inputs from a wider range of stakeholders in relation to issues dealing with financial system stability.

"This council would consist of eminent persons, drawn primarily from the private sector, which would have wide experience in financial sector issues and would function in an advisory capacity to the Central Bank," said Central Bank Governor Ajith Nivard Cabraal.

He said that in addition to the initiatives and programmes already enunciated, the bank also believes that the appropriate legal and regulatory framework supporting financial system stability needs to be further strengthened if we are to address potential future issues in a timely manner.

"Accordingly, necessary amendments to the existing legislation pertaining to banking and also propose new laws in relation to certain areas, which are today not covered by legislation. Such proposed amendments would be in relation to the Debt Recovery Law to expedite the recovery process and create a more creditor friendly environment, Credit Information Bureau Act to widen the scope of the Credit Information Bureau (CRIB) and to provide greater credit information through new technology already acquired by CRIB," explained Cabraal.