Let me conclude by saying that much progress has been made in maintaining a stable financial system. However, as we have seen, the financial landscape is continuously changing, and new challenges are emerging. The Reserve Bank is continuously harnessing the regulatory and supervisory framework to better adapt to the evolving scenario.
A broad wave of insolvency could also lead to a sharp rise in the number of credit defaults. And banks might be forced to lend less. This, in turn, would further exacerbate the financial situation of enterprises, in particular. And clusters of credit defaults always pose a risk to financial stability.