No doubt, it is convenient for analytical purposes to offer comments or presume what constitutes a best practice, but, for practical policy purposes, divergence in international practices is no less relevant than convergence. Third, the scope for, limits to and desirability of adoption of prevalent global practices are governed by the legal, institutional and overall socio-political conditions in our country.
This means that regulatory reform has to continue until appropriate instruments are put in place to deal with the non-bank financial sector, which is increasingly taking the role of credit intermediation previously performed by banks. The  1  Eichengreen, B.