Our financial systems, like those of most countries these days, are connected to global markets and our large financial institutions are active in international markets. So there are impacts on our systems of the extreme dislocation in international markets, even though the Australian banks have strong balance sheets with good asset quality.
The policy approach being followed is likely to ensure greater outreach of banking business, and also, in the present scenario of high growth, enable the banks to usefully lend to the disadvantaged sections and successfully pierce the informal credit segment. III.