Where local bond financing consists mostly of domestic banks, the buying of government securities will tend to crowd out finance for a large number of private businesses and/or for much-needed infrastructure projects.
We are in the midst of the most exciting period of human civilization when two billion of population is expected to move “up” from below poverty line to above poverty line (BPL). Majority of these will be in this sub-continent and banks will have an opportunity to participate in this process, which will bring sustainable peace and prosperity to the mankind.