Over the years, as a crisis prevention strategy, the South Asian countries prioritised sound macroeconomic policies and embraced financial sector reforms focusing on competition, prudential regulation, enhanced transparency, audit and accounting standards. These measures helped in preserving macro stability while sustaining integration of domestic economies with the global economy. 4.
In recent years, multiple shocks, in particular the COVID-19 pandemic and the war in Ukraine, have dampened the economic prospects of the South Asian region, as in other parts of the world. Some countries in the region have also been contending with the  1/5  BIS - Central bankers' speeches  ramifications of unsustainable debt and climate change induced events.