The first phase of India’s financial sector reforms, focusing on the liberalization of interest rates and credit allocations, is largely complete. The essays in this volume analyse the new dilemmas arising from the expanded role of the financial sector, and proposals for the second phase of reforms. The second phase of liberalization and privatization of the real economy is essential to support the development strategy and realize the outcomes of the first phase. The book deals with complex institutional problems and provides international comparisons. The main challenges facing India at this time are reducing the fiscal deficit, improving the credit and risk management of banks, improving systems for identifying and dealing with weak banks, developeing capital markets further, improving financial services and managing links to external capital markets. Two broad themes emerge from the discussions: an improved incentive framework that encourages individuals and institutions to gather, provide and use information for making sound decisions, will assure better allocation of financial resources and prudential regulation and supervision are needed to deal with the increasing complexity of finance while discouraging excessive risk taking. These writings provide an excellent overview and analysis for professionals involved in the banking, investment and financial sectors. The book contains useful material for policymakers, students and researchers in economics, as well as for general readers.
There are no reviews yet.