While certain arbitrages that could potentially have adverse impact would be minimised, the fundamental premise of allowing operational flexibility to NBFCs in conducting their business would not be diluted. 15. Under the proposed scale-based framework, NBFCs would be categorised into  four layers - Base Layer, Middle Layer, Upper Layer, and a possible Top Layer.
Conclusion The recent crisis has highlighted the importance of effective cooperation and coordination by central banks as well as the benefits of improved information-sharing between financial supervisors and central banks. The experiences of the past few years have highlighted the need to deepen our understanding of how globalisation affects both monetary policy and financial stability.