By looking at historical patterns of price fluctuations, it was thought that risks arising from future price movements could be managed effectively. Observations of prices were fitted into the bell curve and transmuted into concrete numbers such as value-at-risk. Such tools gave financial institutions confidence that they had firm control over the risks they were taking.
The inadequacy of private investment in fulfilling the capital  4  BIS Review 74/2008  requirements of agriculture has raised concerns about the state of the rural infrastructure, which could turn into a binding constraint on growth. (c)  Several initiatives have been taken in recent years to improve the agricultural credit delivery mechanism.