Though the Indian banking system remained largely unaffected by the global financial crisis, we cannot pat ourselves on the back, for it was much to do with lack of product innovation and a comparatively lesser degree of integration with the global markets. The coming years, however, will pose big challenges for the supervisors as well.
Most prominent are China and India, which over the past decade have partly opened up to market forces, and the economies of central and eastern Europe, which were freed from central planning by the fall of the Soviet empire.