We are working with the finance sector and other stakeholders to develop a deeper understanding of the interaction between our policies and financial inclusion. The long-term aim is to ensure that consideration of financial inclusion is firmly embedded in the Reserve Bank’s normal business practices. As part of this, the Reserve Bank is also leading the Council of Financial Regulators’ work on financial inclusion.
In today’s financial markets, the fear is that a large proportion of market participants may have become excessively complacent; a situation which may well have been exacerbated by high levels of liquidity, the stability of which is difficult to predict. What then can be done to enjoy the advantages of credit derivatives, while simultaneously minimising the systemic risks they could generate?