The biggest of the constraint has been the legacy of staffing that the public sector banks face. Indian banks employ about 1 million people, three-fourths of which are in public sector banks. It is estimated that about 55 per cent employees would be retiring in the next decade.
Financial market liquidity is usually thought of as a measure of the ability of market participants to undertake securities transactions without triggering large changes in their prices. While it is challenging to precisely measure financial market liquidity, it is generally agreed that highly liquid markets are characterised by a myriad of buyers and sellers who are willing to trade.