Page 68 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
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products. Third, Labour Market Efficiency between the role of state and the markets.
(LME) Measures the efficiency and flexibility
of the labour market for ensuring that workers A similar trajectory has been shown by the
are allocated to their most effective use in the evolution of Indian Financial Markets and the
corresponding regulatory system. Initially,
economy and provided with incentives to give
their best effort in their jobs. Fourth, Market India started with establishing the Reserve Bank
of India (RBI) as a banking sector regulator, and
Size (MS) Measures the domestic demand by
including both domestic and foreign markets later by laying stones of the Ministry of Finance
in our measure. Fifth, Technological Readiness to regulate all the other financial sectors. Over
time, the role of regulators has also advanced
(TR) measures the agility with which an
economy adopts existing technologies to from being just an instrument for planned
development to becoming the referee for a
enhance the productivity of its industries,
with specific emphasis on its capacity to fully relatively modern and complex financial sector
leverage information and communication presently. Importantly, during transformation
India has undertaken a variety of financial
technologies (ICTs) in daily activities and
production processes for increased efficiency sector reform measures.
and enabling innovation for competitiveness. One of the important features of these reforms
Sixth, Trade openness (OPN) measured by is that these reforms were designed by the
the sum of exports and imports to the Gross authorities to perfectly line up with the
Domestic Production GDP, the higher value international best practices, keeping in mind
indicates more openness. Seventh, Good the cumulative needs of the country and other
Market Efficiency (GME) measured based domestic factors. Moreover, these reforms can
on demand conditions and Healthy market be largely categorized as steps taken towards:
competition, both domestic and foreign. Eighth,
Higher education and training (HET) Measures 1. Liberalizing the complete macroeconomic
and regulatory environment under
secondary and tertiary enrolment rates as well
as the quality of education as evaluated by which most financial sector institution’s
business leaders, the extent of staff training is function,
also taken into consideration. 2. Providing strength to the institutions,

Historical Evolution of Financial Markets while improvising their productivity and
competitiveness,
The peculiar historical evolution of a
country generally defines the financial 3. Establishing a well-defined body to
system and the infrastructure of a country. strengthen and oversee the working of
This historical evolution is formed out of the financial system.
continuous interaction between public policy
interventions and various players in the system Interdependence Between Different Finan-
over the period. Moreover, the public policy cial Markets
interventions are also the reproduction of In the empirical finance literature, the flow of
thinking broadcasted by the regulators and the information between various financial markets
governments of that time, who carved them to has always attracted much-needed attention
maintain the balance between innovation and from people working in this field. Researches
stability, together with achieving equilibrium point out the extent of correlation that exists

The Institute Of Cost Accountants Of India

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