I would like to highlight some of the steps taken to ensure greater allocational efficiency in banking operations: (i) Prescription of priority sector norms requiring banks to lend a certain part of their credit to sectors of the economy which, in the absence of these norms, would not receive adequate credit.
However, observers suggest that the United States' unusually favorable investment climate, protections of investor rights, and prospects for rates of return made it likely that once international financing constraints were lifted, the U.S. economy would enjoy larger capital inflows.