However, this same portfolio was not formally in existence only a decade ago and it is in that context that we measure the strides taken, which then reflect greater significance. With all of the above initiatives and changes, a natural question to ask is whether financial inclusion impinges upon financial stability. After all, inclusion requires specialized rules for a specialized market constituency.
All macro-prudential instruments create incentives for financial disintermediation– credit flows that avoid the regulation by moving outside of the regulatory perimeter. Over-use of macro-prudential tools in an attempt to  1  These other macro-prudential tools work by forcing banks to temporarily increase capital or funding buffers during periods of rising asset prices and leverage.