For example, despite its economic miracle, China’s real exchange rate did not appreciate in the two decades before the global financial crisis. In the decade before the crisis erupted, China’s relentless accumulation of reserves contributed to low real interest rates and, for a time, subdued macroeconomic volatility.
With a view to expediting the flow of credit to the MSE firms, RBI, as a proactive measure, issued guidelines in May 2009, advising banks to start using scoring models for making lending decisions in case of all advances up to Rs.2 crore.