While state intervention for Northern Rock, Fannie Mae, Freddie Mac and Citi Group just emphasise the cost of ineffective regulation and lack of capacity to fully understand risk being undertaken by the bank itself. We must have learnt lessons from these developments and we should not be scared to handle our challenges.
On its part, the Reserve Bank remains committed to its legal mandate which includes ensuring a safe and sound financial system knowing fully well how critical the banking system is in the development agenda of the country.