It is important to bring the poor and under-privileged sections of the society within the banking fold for inclusive growth. In this context, our recent financial inclusion drive has four key elements. First, provision of a set of basic financial products and services for the vulnerable and financially excluded sections.
Or even worse, a combination of the two if we don’t find a clear solution to the infamous sovereign-bank nexus. We must consistently guard against such developments. The priority must therefore be to complete the banking union and to establish the capital markets union, as well as regulatory clarity on how to avoid excessive risk concentration on banks’ balance sheets.