Financial stability: Underlining context

Show simple item record

dc.contributor.author Goyal, Ashima
dc.date.accessioned 2015-12-02T10:39:33Z
dc.date.available 2015-12-02T10:39:33Z
dc.date.issued 2015-05
dc.identifier.uri http://hdl.handle.net/2275/362
dc.description.abstract The paper argues that context is important in discussions of financial stability. It explores weaknesses in domestic and international reforms and ways of overcoming them, based on mitigating the fundamental failures finance is subject to. Relevant market failures need to be taken into account even in the design of monetary policy regimes such as inflation targeting. Rather than blind following of international prescriptions better alignment to domestic structure and needs whether in monetary policy, restructuring financial regulators, capital adequacy criteria and bank balance sheets is required. It argues marginal changes in India's financial regulatory structure will suffice, brings out a possible trade-off between capital adequacy and leverage caps following from special features of Indian regulations some of which need to be preserved, gives the history behind the rise in non-performing assets, and points to technological changes that may make financial inclusion more compatible with financial stability. The possibility of coordinating on simple leverage reducing measures with good incentive possibilities should be taken up in global dialogue, and regional alternatives supported as a corrective for asymmetries in bargaining power en_US
dc.language.iso en en_US
dc.relation.ispartofseries WP;WP-2015-014
dc.subject Financial stability and reforms en_US
dc.subject market failures en_US
dc.subject leverage caps en_US
dc.subject non-performing assets en_US
dc.subject inflation targeting en_US
dc.title Financial stability: Underlining context en_US
dc.type Working Paper en_US

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search


My Account