| Abstract | This paper examines a national risk management approach to strengthening the domestic financial system. Risks to the financial system are inter-related to risks in the real sectors and their methods of financing growth. Shocks to financial systems are seen as emanating from distortions to incentives and structural weaknesses in fundamentals, which create portfolio shifts by investors. The importance of credible policies, sound fundamentals, good supervision, robust infrastructure and non-distortive incentives is emphasised. |
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