There is a clear indication as per the available data as mentioned earlier that a huge potential exists for the UCBs to play a more proactive role in the banking sector in the coming years. 2  BIS Review 96/2009  The potential exists, but how important a role the UCBs can play in our scheme for an inclusive growth?
When capital inflows tie in with overly optimistic growth expectations, this may cause asset prices such as land prices and stock prices to rise excessively and, ultimately, the asset price bubble to burst. In a time of an abrupt reversal in global capital flows, countries experiencing capital outflows may be forced to undergo large-scale economic adjustments.