And at times of extreme threat to financial stability, the Federal Reserve stands ready to use the discount window and other tools to protect the financial system, as it did during the 1987 stock market crash and the September 11, 2001, terrorist attacks.
Coming back to the recent times, I am equally impressed by the sagacity of our policy makers and legislators, who built in certain practices in the functioning of the Reserve Bank and the Indian banking system. We see similar practices being recommended now by the international standard setting bodies as international best practices.