While infrastructure typically requires long term funding, the deposits of banks, their main source of funds, are relatively short-term. The problem of asset-liability mismatch in long term financing is not unique to India; banks elsewhere too face the same problem. But in advanced economies, the long term finance space is filled by insurance companies and pension and provident funds.
BIS central bankers’ speeches  3  ratio cannot be restored simply by suspending dividends and share repurchases.6 In my view, these features of the program are among its most crucial. At the same time, having the authority to do something is necessary, but not sufficient – there also needs to be the institutional will.