The relatively lower presence of foreign banks in the Indian banking sector also minimized the direct impact on the domestic economy. India is exposed to the spill-over effects of the regulatory polices adopted by the systemically important jurisdictions in the World. Volatile cross-border capital flows are one such manifestation.
Over time, the bank had accumulated large credit exposures which soon became non-performing. The full extent of lending exposures remained hidden from public view for a further decade. However, the demise of the Amsterdam Bank came through a run on its gold and silver in 1795, following the invasion of the French Revolutionary Army.