Importance of the banking sector in the Indian financial system, however, remains critical.
The agenda to make the financial sector responsive yet resilient has to include improving liquidity in the G-Sec market across the tenor, create a liquid yield curve to provide a basis for pricing private debt, further development of the corporate bond market, expanding the set  BIS central bankers’ speeches  5  of products and participants in the derivative market to provide adequate hedging options for credit, interest rate and forex risks, particularly at the long end and gradual capital account liberalization within the framework of financial and macro-economic stability.