Based on cross-country experience, some of the main drivers of foreign banks would be the desire of banks to follow their home customers abroad, opportunities in the host countries, the attractiveness of local profit, the absence or elimination of barriers to foreign bank entry etc. 12. The share of foreign banks in total assets of the banking sector in India is 6.5 per cent.
If signs do emerge of increased inflationary pressures arising from a depreciation of the exchange rate of the Rand, in the absence of any other counterveiling factors referred to above, then monetary policy would have to respond in the appropriate way. This, however, does not imply that the Reserve Bank will defend a specific level of the exchange rate. 3.