A sound financial system reduces the burden on monetary policy, which would otherwise have to step in to stabilise the economy. While banks in principle help to stabilise investment and consumption patterns, they can also contribute to procyclicality by becoming shock amplifiers or even trigger financial shocks.
Apart from building on the successful run of the CMA, the DFIA coincides with the launch of the new National Strategy for Financial Inclusion or NSFI 2022–2028, which focuses on advancing inclusive digital finance and the financing access of micro, small, and medium enterprises or MSMEs.