Finally, to address the systemic risks arising from growth of financial conglomerates, the RBI has put in place an oversight framework which envisages periodic sharing of information among the concerned regulatory bodies. Seventh, the legal environment for conducting banking business has also been strengthened. Debt recovery tribunals were introduced early into the reforms process exclusively for adjudication of delinquent loans in respect of banks.
The global financial system has changed dramatically since Bank Negara’s early days, both in size and complexity. Yet for all its supposed sophistication, the system is still characterised by cycles – as is the case with so much of human behaviour.