Further, internet banking, e-commerce, e-money and other information technology related innovations are adding new dimensions to risks faced by the banking sector. Mergers and acquisitions as well as outsourcing of some non-core activities are undertaken by the banks with some strategic objectives they also enhance the risks in banking.
But, given the overall scale of the challenge, as well as its regional diversity, properly visualizing the role of different participants and coordinating their activities will be of critical importance. And all this will have to be done with full consideration of cost-effectiveness, commercial viability and, of course, the implications of any strategy for financial stability.