Financial Infrastructure

Why it matters

• It serves as the backbone for systemic stability by mitigating counterparty risks through robust clearing and settlement mechanisms.
• It promotes financial inclusion by lowering transaction costs and expanding access to digital payment channels for underserved populations.
• It enhances the efficacy of monetary policy transmission by ensuring the smooth flow of liquidity across the banking sector.
• It fosters economic growth by providing a secure environment for capital allocation and investment activities.

How it is asked

Focus on the components of financial infrastructure such as payment and settlement systems, central securities depositories, and credit registries, and their role in maintaining financial stability and supporting digital economy initiatives.