BIS central bankers’ speeches  1  Growth in India has clearly slowed down since then to 6.5 per cent in 2011–12 and a likely 5.8 per cent in 2012–13, with significant downside risks. The twin deficits – fiscal and balance of payments – have compounded our problems.
The country must again review and define an acceptable leverage profile for our economy and specifically for financial institutions. Defining leverage standards too tightly inhibits growth. Defining them too loosely invites excess risk and crisis. My views on this topic are based on 36 years of broad experience in the Federal Reserve.