Implications for supervisors and banks  But what does all I have said about a supervisory level playing field in Europe mean for supervisors and banks? Let’s begin with the supervisors: The introduction of European supervision is an extremely exciting challenge.
The reforms in the area of the financial sector were guided by the recommendations of the Narasimham Committee. Alongside the deregulation of the banking industry, including entry for new private sector banks, the general thrust of monetary policy has been towards reduction in pre-emptions, greater recourse to open market operations, deregulation of interest rates and widening and deepening of financial markets.