7 See Richard H. Clarida (2019), “The Federal Reserve’s Review of Its Monetary Policy Strategy, Tools, and Communication Practices.” speech delivered at the 2019 U.S. Monetary Policy Forum, sponsored by the Initiative on Global Markets at the University of Chicago Booth School of Business, New York, February 22, https://www.federalreserve.gov/newsevents/speech/clarida20190222a.htm.
Corrective actions are being taken in the context of regulatory reforms for banks thorough, Basel III guidelines and for MFIs through guidelines based on the Malegam Committee recommendations. Learning from the crisis, we need to build a regulatory framework which ensures a balance between flexibility to MFIs in their operations and regulations that ensure customer protection and financial health of the MFIs.