The share of wholly Governmentowned public sector banks (i.e., where no diversification of ownership has taken place) sharply declined from about 90 per cent to 10 per cent of aggregate assets of all scheduled commercial banks during the same period. Diversification of ownership has led to greater market accountability and improved efficiency.
The progress made in building the SSM has moved us closer to this aim. But it is clear that, for deep cross-border integration to develop, effective institutions for public risk-sharing need also to be in place.