4  BIS Review 54/2007  While there is some evidence of reduction in under employment and disguised unemployment in the informal sector and larger work opportunities, the provision of productive employment is of highest priority in India. 5.
Such fire sales can lead to a generalized decline in asset prices, which further raises investors’ funding liquidity risk through margin calls. In the extreme, widespread uncertainty about the viability of banks can lead to a total drying up of private funding, with significant adverse effects on the financial system and the broader economy.