For developing markets like India these concerns may not be fully valid, given the low penetration of banking services, much less complex financial markets and level of regulatory oversight exercised over non-banking financial companies (NBFCs). The Indian shadow banking system is relatively small and less complex.
We are likewise closely consulting with our peer central banks and bank regulators to learn from their rich experiences. BIS Review 11/2005  1  These have yielded a slew of regulatory changes and others yet to come that will radically change the rules of the game for our banking industry. For the better, we are convinced.