But in the 10–12 years before the crisis there had been a systematic disruption of financial regulation in the major jurisdictions. This combination, we may disagree whether the source was predominantly one or the other, but certainly nobody would disagree about the combination of the two. I would flag this as one major risk for the years ahead: that we repeat the same mistake.
The model uses cutting edge techniques in analysing the network of the Indian financial system and identifying, on a real time basis, buildup of excesses and risk concentrations, if any. Advanced stress testing techniques are being used to assess the resilience of the financial sector.