Doubt has been expressed in certain very serious quarters as to whether the sum of the risks taken by financial agents in this regard the world over is fully contained. Banks play a prime and vital role in a financial system. A stable banking system is thus a pre-condition for a stable financial system.
The importance of a stable financial system for the long-term growth of an economy cannot be over-emphasised. I recognise that we are still some way off from devising a framework for financial stability which is as comprehensive as that for price stability, but no one can deny the importance of a system for providing credit to business that is fair, efficient and reasonable.