As I will document further, among the changes that we have gone through in the last decade and a half, a key transformation is the increasing openness of the Indian economy. Within that, our economic relationships with the rest of Asia are also intensifying through sustained expansion in trade and hence in financial relationships as well.
The corporate governance of financial institutions still has problems like insider control, insufficient information disclosure, deviated business targets, lack of clear and effective disciplines and market incentive which affect financial institutions' risk management capability and are likely to trigger credit risks and operational risks. 6. Monitoring and supervision of risks from cross-sector financial businesses.