Address by Mr Anand Sinha, Deputy Governor of the Reserve Bank of India, at the Risk & Governance Summit, organized by the Indian School of Business, Hyderabad and Deloitte, Mumbai, 23 August 2012
....Before concluding let me briefly touch upon the Reserve Bank’s approach towards risk management. Even at the height of belief in the self correcting nature of free markets, which has now been debunked in the aftermath of crisis, Reserve Bank maintained a stance of conscious gradualism in fostering innovation and permitting sophisticated products in the markets. Reserve Bank’s approach is more guided by the imperatives of ensuring that finance remains linked to the real sector and does not derive dynamics of its own. Given the nature of our economy with wide disparities in the income levels, education and sophistication and the pressing need for ensuring inclusive growth, the market development strategy has been carefully calibrated so as to avert any excesses which could lead to market failures......
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