BIS central bankers’ speeches  9  Financial markets The development of financial markets was pursued by the Reserve Bank in the broader context of financial stability. A calibrated approach to financial sector development was adopted based on the level of maturity of the financial system and the needs of the real economy.
Delicate balance between fostering growth by encouraging financial innovation visà-vis the impetrative of containing excesses that could lead to instability was meticulously observed. The approach was to ensure that finance remains firmly wedded to the real sector and does not assume dynamics of its own.