In fact, more than 40 percent of the estimated outflows from EMEs in the year through the third quarter of 2018 that can be attributed to external factors was explained by increased market expectations about the Federal Reserve policy rate.3 It is worth to highlight that global financial conditions remain accommodative in relation to historical standards, albeit tighter than a year ago.
In summing up, I would like to reiterate that though each one of the key challenges facing the Indian financial system begins with the banking system, it does not and should not  6  BIS central bankers’ speeches  stop at the banking system.