In recent years the blurring of the distinction between financial intermediaries under the combined effect of domestic and cross-border integration, innovations in instruments and processes, advances in technology and the massive volumes of capital intermediated by the financial system has necessitated a pro-active strengthening of the regulatory and supervisory framework.
The financial landscape is increasingly witnessing entry of some of the bigger banks into other financial segments like merchant banking, insurance, etc., which has made them financial conglomerates.