/ review / settlement or withdrawn under section 12a. similarly, liquidation orders have been passed in respect of 1224 corporate debtors. moreover, the operationalisation of section 227 of the code in 2019 empowered reserve bank to leverage the ibc mechanism for resolution of financial service providers ( fsps ). reserve bank has used this avenue for initiating insolvency proceedings against four fsps so far and all of them have been successfully resolved as on date. evidentially, ibc seems to have played a significant role in cleaning up the bank balance sheets. although the ibc has proven to be a valuable tool for creditors, its full potential has been realized only to a limited extent. let me elaborate on some of the factors that have constrained its effectiveness to give a clearer understanding of why the ibc's potential has not been fully harnessed. ( i ) delay in initiation time and timing are both crucial for the effectiveness of the resolution process. while delays within the ibc process have been widely discussed, an equally important issue is the delay in initiating the ibc process itself. the ibc grants all creditors the right to initiate the cirp upon default. however, in practice, the average time taken by financial creditors from the date of default to the filing of the cirp is often several months. a significant amount of value is lost during this period, which ultimately impacts the recovery outcome. in this context, the role of financial creditors is vital - they must take prompt action to prevent further value erosion. 2 / 6 bis - central bankers'speeches while ibc has gained prominence of late, we need to realise that it is just one amongst the host of mechanisms available for creditors to resolve financial stress. there are other statutory mechanisms for enforcing security, as well as out - of - court workout options for resolution, each with its own role and limitations. from a regulatory perspective, the reserve bank remains neutral regarding the mechanisms chosen by lenders, as long as the actions are initiated in a timely manner so as to facilitate the prompt resolution of financial distress. ( ii ) efficacy of out of court workouts the real success of a formal insolvency framework lies in its role as a deterrent than based on its actual use. it is out of court workout procedures that need to work as the primary instruments of resolution, albeit under the shadow of the formal insolvency framework. in the indian context, the rbi's prudential framework on resolution of stressed

##ers are among the most prominent cash providers in segment 4, while securities dealers are the primary borrowers of cash. dealers may use this cash to fund their own portfolios ; they may also lend it to other dealers in the general collateral finance ( gcf ) repo market ( segment 5 ). this segment is cleared through the fixed income clearing corporation, and is currently the only segment of the market that is centrally cleared. based on figures from september 2015, the size of the tri - party repo market, segment 4, was approximately $ 1. 5 trillion and the gcf market ( segment 5 ) was approximately $ 300 billion. the general lack of data on bilateral repo activity makes it difficult to know the precise size of each individual segment of that market, but bilateral repo and securities lending taken together accounted for approximately $ 1. 7 trillion in outstanding activity. 7 general collateral or gc repo involve repo transactions secured by a range of treasury or other assets that are accepted as collateral by the majority of intermediaries in the repo market. gc repo assets are high quality and liquid, but not subject to exceptional specific demand. these estimates are based on the methodology described in adam copeland, isaac davis, eric lesueur, and antoine martin ( 2012 ), “ mapping and sizing the u. s. repo market. ” bis central bankers ’ speeches given its vast scale and position at the center of the wholesale finance markets, repo is without doubt a critical activity. repo is a key source of financing for a wide range of firms, and an important “ safe asset ” for investors. the gcf segment, although modest in size compared to the overall market, is a key source of financing for smaller dealers, particularly in times of financial stress. the availability of repo funding for a diverse range of participants supports market liquidity by enabling them to make markets in treasury and agency securities. ccps themselves also rely on these markets, often using repo to earn interest on cash collateral and counting on access to repo markets in their liquidity planning. the fsb has called on authorities to “ consider the pros and cons of broadening participation in repo clearing arrangements. ” 8 what are the potential benefits of greater clearing in this market? in addition to the potential netting benefits i mentioned earlier, a ccp typically performs three other beneficial economic functions : 1 ) a reduction in the potential cost of counterparty default coming