Private sector has become the main vehicle for investment, production and distribution of goods and services while state intervention has been limited to provision of physical infrastructure, social services and other public goods in support of private investment and making markets function efficiently. Trade liberalization has proceeded quite rapidly and average tariff rates have declined drastically.
2  BIS central bankers’ speeches  c.  Shadow banking system  A third priority area deals with the so called shadow banking system. This is becoming more important because stricter regulation of the banking sector is setting incentives to move business into lightly or not (or not yet) regulated parts of the financial system.