In this background, would a single regulator, other than the central bank help? Will separating banking supervision from the central bank be of help?
I would like to quote here Professor Charles Goodhart (2000): “I doubt whether the pressures to establish a unified supervisory agency are quite as strong in most developing countries.” He adds: “For such reasons, I do not believe that the case for separation,  BIS Review 40/2004  1  which has become stronger in the developed countries, should be transposed also to the developing countries.” I hope the views of Professor Goodhart in this regard, since he made the above comments at a memorial lecture in RBI, have not changed over the past three-four years.