Nevertheless, much of today’s international banking involves deeper interactions between the banks and the national economy, and as such entails macroprudential risks. Lending Take lending. This is the most familiar source of leakage of international finance into the domestic economy.
Equally important, our banking system has remained sound and stable. Other segments of the financial sector – including the money, bond and equities markets as well as the foreign exchange market – have showed signs of stabilization if not recovery.