Japan’s banking crisis is also ultimately likely to be much more expensive to resolve than the American and Swedish crises, again providing prima facie evidence that financial diversity helps limit the effect of economic shocks.
The banking sector – similar to other sectors of the Indian economy has always been very responsive to change and has adapted itself very well to meet the challenges which keep emerging frequently. It has also proved that it cannot only adapt well but also quickly so that response times are fast to prevent recurrence of negative incidents.