Gurumoorthy Mahalingam: Some thoughts on forex markets in India Keynote address by Mr Gurumoorthy Mahalingam, Executive Director of the Reserve Bank of India, at the India Treasury Summit, Mumbai, 25 February 2015. *  *  *  Contribution by Shri Anand Prakash, Director, Financial Markets Operations Department in preparing the speech is gratefully acknowledged.
Liquidity risk seems to have been systematically underpriced before the crisis. Firms are now much more focused on both managing and more accurately pricing this risk. It is also appropriate that the pricing of a bank’s services accurately reflect the costs and profitability of different business lines, which should lead to a more efficient allocation of resources.