The bird's eye view in finance

Micro prudential regulation of finance is essential

We are seeing difficulties in banks, mutual funds, non-banking financial companies (NBFCs), the bond market, and real estate. There are interconnections between these difficulties: The components are not siloed. It is difficult for a siloed financial regulatory architecture to obtain information, engage in root cause analysis, and solve problems. There is a natural bias for micro-prudential regulators to postpone the recognition of a problem. System thinking diverges from the view of one firm at a time. We require the Fiscal Resolution and Deposit Insurance (FRDI) Bill, the Financial Data Management Centre (FDMC) and a technical secretariat at the Financial Stability