It is an honour to address the galaxy of central bankers assembled here in connection with the annual meetings of the BIS. My observations are based on the Indian experience and would focus on rebalancing of efficiency and stability in the context of financial sector reforms in India. In India, we have been moving from a government-dominated financial system to a market oriented one.
In the past, the Government domination was, in a sense, imparting too much stability through rigidity and too little efficiency. In this context, enhancing efficiency while at the same time, avoiding instability in the system, has been the challenge for the regulators in India. The concept of financial stability needs to be understood contextually also.