Systemic issues arising out of interconnectedness among banks and between banks and Non Banking Financial Companies (NBFCs – our shadow banks) and from common exposures were addressed by, among other measures, putting prudential limits on aggregate interbank liabilities as a proportion of banks’ Net Worth, restricting access to uncollateralized funding market to banks and Primary Dealers with caps on both borrowing and lending, increasingly subjecting NBFCs to more stringent prudential regulations as also restricting banks’ exposure to NBFCs to contain regulatory arbitrage.
The breakdown of the Bretton Woods system had given rise to serious disturbances. The unprecedented oil price shocks of 1973 and 1978 had 3/7  BIS central bankers' speeches  unleashed destabilizing forces the world over.