A major inhibitor appears to be what economists call “home bias.” Virtually all our trading partners share our inclination to invest a disproportionate percentage of domestic savings in domestic capital assets, irrespective of the differential rates of return. People seem to prefer to invest in familiar local businesses even where currency and country risks do not exist.
One is laying the foundation for low and stable inflation. Another is helping to facilitate economic growth. Perhaps the most direct way in which the Central Bank promotes financial stability is through regulation and supervision. On the regulatory front, modernization of the laws pertaining to the financial services industry is taking place. We are focusing on the most important and urgent problems first.