As of 2017, the average urban market was home to 18 community banks and just over 8 large banks, which represents a change from 21 community banks and 6 large banks in 1997 (figure 9).
A recent paper by Helene Rey of the London Business School,6 highlights the fact that the impossible trinity of fixed exchange rate, an open capital account and an independent monetary policy has now been rendered irrelevant. What is relevant today is a dilemma or an “impossible duo” – free capital flows may inevitably mean a loss of monetary policy independence. iv.