##e associations would take this up on a priority basis so that our smes too could access the corporate debt market in the coming years as has been the experience in the us, europe and some asian countries. this would also go a long way in fulfilling our financial inclusion objectives for the smes, most of whom, as we know, do not have access to formal financial sector. corporate debt can also provide an excellent long term investment avenue for retail investors, who lack knowledge and understanding of this important asset class. one hopes that, market bodies, such as, the fixed income money market and derivatives association of india ( fimmda ), the primary dealer association of india ( pdai ), etc. together with the stock bis central bankers ’ speeches exchanges take up the task of spreading awareness with all sincerity that it deserves. this is very relevant as indian households have one of the highest savings rate in the world but the household wealth in india is generally parked in bank deposits, gold and real estate with almost negligible investment in corporate bonds. if retail investors prefer to invest in shares of certain companies, there should be no reason why they should be hesitant to also consider investing in its debt. financial stability various financial crises have highlighted that even well regulated, supervised, capitalized and managed banking systems may have limitations in mitigating financial vulnerabilities. the crises have underscored that the banking systems cannot be the predominant source of long - term investment capital without making an economy vulnerable to external shocks. alan greenspan had argued that bond markets could act like a “ spare tyre ”, substituting for bank lending as a source of corporate funding at times when banks ’ balance sheets are weak and banks are rationing credit. the capital inflows to the country through ecbs, while helping the country fund the current account deficits and corporate to raises resources at a lower cost, could become a source of the transmission of severe external shocks to the domestic economy. therefore, it is important to develop the domestic corporate bond market to enable corporates to meet a substantial part of their funds requirement domestically. further, credit flow to infrastructure sector by banks has grown manifold in last few years. there is, however, a risk of exposure attached to banks with such long term financing considering alm mismatch. moreover, banks ’ ability to withstand stress is critical, especially in the context of the recent increase in banks ’ non - performing assets on account of their exposure to the infrastructure sector. bond markets

urjit r patel : encouraging young enterprising skills in india speech by dr urjit r patel, deputy governor of the reserve bank of india, at the business standard best b - school project awards, welingkar institute of management development and research, mumbai, 12 january 2015. * * * i am honoured to be part of the business standard best b - school project awards to be presented today for recognising the bright young talent of business schools in india. i understand that this is the 7th edition of the award, and 158 colleges have participated from across the country with a wide range of projects. this conveys the high esteem that the award is held in, its popularity among b - school graduates, and the impact it has made over the years in recognising and honouring young professional talent. the teams are evaluated on the basis of the rigour of their work, innovative approaches, structure of the content and the meaningful solutions they provide for diverse business, social and organisational challenges. the function symbolises “ out of box ” thinking and the entailed enterprising skills of the “ young india ”. it epitomises a tribe of budding professionals who are not risk - averse and have “ fire in the belly ” to take a leapfrog into the future. frankly, i am deeply envious of the young students that i see in front of me. they have the dreams, desire and the capability to create new business models and modern enterprises, which india critically needs at this juncture. there are several notable inter - locking drivers that have been recently initiated or reinforced with vigour, which will complement our budding graduates ’ innate talent. • an emphasis on entrepreneurship for solutions. to absorb a labour force that increases by about one million per month requires many more entrepreneurs, tens of thousands, if not hundreds of thousands, more. • the national objective to make india a global manufacturing hub and a substantive part of international supply chains. the “ make in india ” vision / strategy is apposite and provides a much needed “ focal point ” to inculcate durable competitiveness in key sectors of our economy. • the stress on improving india ’ s ranking in the “ ease of doing business index ”. this provides a measurable gauge to determine how we progress. the repeated commitment and associated ground - level changes already taking place towards deepening “ policy - driven ” governance ( and less government ) is mission critical in this context.