The share of the (collateralized) market repo and CBLO segments in the total money market is significant at nearly 90% in recent months. Limit on inter-bank exposures 25. Recognising the possible impact of excessive interconnectedness within the banking system, in March 2007, RBI limited a bank’s inter-bank liabilities (IBL) to twice its net worth.
Productivity, however, has slowed in the advanced economies in the last ten years. 15 Technology can affect inflation indirectly as well, by fostering globalization and the development of global value chains. 16 The ‘Amazon effect’ is one such technology factor: 17 the internet allows consumers to compare prices, thereby reducing retailers’ margins with repercussions on price levels and dynamics.