Financial Sector Reforms in the World

Financial sector in fact is the brain of the body economy. The traditional economists have never considered the significance of the finance. The finance in reality was given a status of second class citizen in the economic literature. Obviously, the need has emerged to rewrite the monetary economics in the framework of this background. There is an urgent need to explore the general theory of finance in a given economic system with inbuilt linkages with other development agents. Since the new classical economics, the financial super structure became one of the development activities. Finance since then plays a significant role in solving the development problems of the developing economies. The Financial Liberalization School and the Neo-Liberalization approach has further led the foundation of the Basel-! and II. The Narsimham Committee I & ll paved the play to have macro-level policy initiatives required for positive business performance of the financial institutions. But the customer centric approach cannot be denied. In fact there should be a trade off between business centric and customer centric approaches. However proper plinth has been constructed by the Narsimham Committees. The final financial super-structure is yet be erected in the frame work of financial liberalization approach.