To enhance efficiency and stability of the financial system and thus contribute to growth and employment, several steps have been undertaken for widening, deepening and integrating financial markets although it is “work in progress”. Simultaneously, new processes and institutional arrangements have been put in place in regard to the banking sector, deposittaking non-banking financial companies and systemically important non-deposit-taking nonbanking financial companies.
By and large, these initiatives, in particular supervisory systems, are in alignment with the global best practices, but there are dynamic trade offs between public ownership of financial institutions, regulation, financial innovation, etc. Similarly, several steps have been taken to enhance use of technology and market microstructures in the financial sector. The financial sector policies are continuously evolving, essentially in a proactive manner.