And, having done so, how can we make such a plan understandable to the public? I’ll next illustrate a method I use to help me judge the best plan of action at a particular time.
Moreover, many such entities in this lightly regulated segment were essentially indulging in regulatory arbitrage – what was not permitted for banks was happening through this channel. It was therefore decided in 2006 to put in place an elaborate prudential framework for such identified entities having systemic implications.