Recent global financial crisis has, however, shown that low levels of inflation and high levels of growth do not guarantee financial stability. Accordingly, there is an increasing emphasis that financial stability should also be an explicit objective of central banks besides price stability and growth. In India, however, financial stability was recognised as another important objective of monetary policy much before the crisis.
The yen is currently being traded in the range of 119-122 yen to the U.S. dollar. With regard to corporate finance, private banks are becoming more cautious in extending loans to firms with high credit risks while they continue to be more active in extending loans to blue-chip companies. The lending attitudes of financial institutions as perceived by firms are becoming slightly more severe.