A number of banks, mostly smaller ones following a traditional business model, have structural weaknesses. In some cases, this is due to inadequate corporate governance and weak internal controls, while in others it is because of their reduced capacity to access the capital markets and take advantage of economies of scale and scope. These banks urgently need to review their business models.
Direct intervention to build financially inclusive system is critical as one recognizes fully (i) financial markets failures and imperfections such as information asymmetries, lack of sensitivity to gender and redistributive dimensions of resources and wealth and high transaction costs etc.