Traditionally, like other emerging markets, Indian economy has been bankdominated. So whether it is for project development, or working capital needs of the corporates, banks have been the primary source of credit. Though primarily banks are supposed to undertake maturity and liquidity transformations, there are limitations on the extent of asset-liability mismatches they can run on their books.
Moreover, continued strong business confidence could provide more support to domestic  BIS central bankers’ speeches  1  economic activity in the euro area than currently expected. On the other hand, downside risks relate to the ongoing tensions in some segments of the financial markets that may potentially spill over to the euro area real economy.