This holds all the more true for an area like financial system where changes are rapid and frequent. The dynamic nature of legislation was well articulated when Aristotle said “Even when laws have been written down, they ought not always to remain unaltered”. India is said to be one the most over-legislated countries.
Arrears rates in some areas have continued to creep up, but asset quality generally remains good (especially by international standards). Despite the uncertainties about Europe that I’ve already referred to, conditions in funding markets for the Australian banks have improved since the crisis, and so has system-wide growth in deposit funding. Domestic securitisation markets have been recovering.