PwC's Managing upstream risk: Regulatory reform review - An asian perspective October 2013 | Page 7

The 4th Pan-Asian Regulatory Summit was held over
25 and 26 September 2013, connecting regional and
global regulators with key stakeholders, business
leaders and compliance and risk management
professionals in a forum to discuss the ever-changing
regulatory landscape. Ravi Menon, Managing
Director of the MAS delivered the opening speech,
noting the region’s progress in relation to key
regulatory reforms and possible consequences to
watch for. In his speech, he listed Basel III, liquidity
buffers, OTC derivatives and ending too-big-to-fail
as top reforms the region has made most significant
progress in. As for consequences, he cited examples
of inconsistent implementation of rules across
jurisdictions, cross-border implications of national
rules, and impact on trade finance and long-term
finance. He cautioned that although reasonable
progress has been made, regulation must be
complemented by rigorous supervision and sound

risk management and that “regulation must not seek
to eliminate all risk and must be impact-sensitive”.
According to the World Bank in its bi-annual India
development update released on 16 October 2013,
the accelerated reform momentum seen in India’s
economy in the last few months puts the country
in a good position to take advantage of the global
recovery and offers an opportunity to further
strengthen the business environment and enhance
fiscal space. Making the most of this opportunity,
however, would require policy efforts including
investment in infrastructure and banking and
financial sector reforms. Fiscal balances should also
be strengthened and business regulations liberalised
so firms are encouraged to expand. Martin Rama,
the World Bank’s chief economist for South Asia, said
higher rates of growth were ‘critical’ if India is to end
poverty by 2030.

Editorial | Regulatory Reform Review

7