In particular, we have seen that an oversized financial industry tends to exacerbate information asymmetries, moral hazard problems, and the hunt for yield, leading to excessive risk-taking and over-leveraging of the system. The events of 2007–2008 suggest that when financial sectors are “too large”, the allocation of resources may become inefficient.
I would like to specially welcome the parents of the students, who are present at this Convocation. Without some sacrifice and a good deal of support, successful completion of higher studies by young men and women, who are here today, would not have been possible.