Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
India is preparing to impose a temporary tax of up to 25% on steel imports to counter cheap Chinese steel flooding the market, according to government and industry sources.
Key Developments:
Safeguard Duty Proposal
- A 25% safeguard duty is under consideration to protect domestic steelmakers.
- An investigation led by the Directorate General of Trade Remedies is expected to conclude within a month, paving the way for the tax implementation.
Support for MSMEs
- Small manufacturers (MSMEs) initially opposed the proposal but dropped their objections after receiving assurances of discounted steel prices.
- MSMEs registered with the government will receive steel at FOB (free on board) export prices, about 20% lower than market rates.
Industry Concerns
- Major Indian steel producers such as JSW Steel, Tata Steel, and ArcelorMittal Nippon Steel India have raised concerns about unfair competition from low-priced Chinese imports.
India’s Steel Imports
- Despite being the world's second-largest crude steel producer, India has become a net importer of steel.
- Imports surged to a record high in the first seven months of the current financial year, posing a challenge to domestic producers.
Government’s Stance
The steel ministry has recommended a 25% safeguard duty on flat-steel products for two years. The commerce ministry is expected to take a final decision soon, with broad consensus emerging after addressing MSME concerns.
Impact
- Positive:
- Protects domestic steel producers from cheap imports.
- Ensures affordable raw materials for MSMEs.
- Potential Risk:
- Could strain trade relations with China.
- May marginally increase costs for large-scale steel consumers.
India's decisive move underscores its efforts to balance domestic industry protection with the needs of small manufacturers, as it works to curb the growing reliance on cheap Chinese steel.
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