However, considering the centrality of banks to the nation’s economic order, their role in women empowerment cannot be restricted merely to linking them to the formal financial system. The banking and finance sector in India has emerged as a significant employer of women, though related data suggests that there is still tremendous scope for improving their presence in this sector.
This is in contrast to shadow banks, who create money-like claims more cheaply, by relying on an early exit option, and who are therefore more vulnerable to runs and the accompanying fire-sale risk.