The financial sector comes of age when it has diverse institutions, catering to different segments, ranging from retail to wholesale, micro-finance to project finance, nurturing specific sectors and offering specialised services and tailor-made products to niche segments. 2. In India, banking industry is the most important channel which provides financial services.
It finds that lax monetary policy decreases risk aversion in the stock market after about nine months. This effect is persistent, lasting for more than two years. Moreover, monetary policy shocks appear to account for a significant proportion of variation in risk aversion. See Hoerova M., Bekaert G., Lo Duca M., 2013, Risk, Uncertainty and Monetary Policy, Journal of Monetary Economics, forthcoming.