Although there was a significant local bank failure, much of the actual and prospective loan losses in the Latvian downturn are being borne by the foreignowned banks that made the loans (the bulk of them denominated in foreign currency, a factor which certainly complicates the assessment of risks and narrows the range of policy options).
But a prime objective for us as a central bank is to stay close to our community. With the Reserve Bank of India based here in Mumbai, we have our peers and representatives of the financial community close by. Mutual exchange is necessary in a globalised financial world. We all know that.