Yet corporate banking responsibility requires that banks deliver 1. efficient services at competitive rates. In view of this, we are working to put in place another piece of infrastructure, the Credit Reporting Bill to underpin the establishment of Credit reference bureaux. The draft bill should be passed into law this year.
But such reliance on exports can become a liability if export demand shrinks which can happen for reasons exogenous to the emerging economy. There is obviously a trade off here. Self-insurance, as defined by reserve build up through aggressive exports, offers protection against financial contagion, but it also makes the economy vulnerable to trade contagion.