However, taking note of the predominant position of banks in the Indian financial system and taking a realistic view, can we expect the bank finance to comprehensively cater to all types of investment needs? Irrespective of whether it is short, medium or long term, or whether it is loan, debt or equity financing, or it is with low, medium or higher risk propositions?
Should we turn our banks like the universal banks in Germany, catering to every type of investment demand of the entire economy? 11. Or, alternatively, should we develop capital market so that it can cater the increasing need for investment and also risky investments? Like those in the USA? 12.