It's the incentives, stupid

Conservatives have argued that the existing policy machinery of Indian finance is broadly fine. The difficulties of YES Bank are a reminder that there are significant difficulties in the policy apparatus. It is important to not slip into personalising the failure. The personnel in the government and the Reserve Bank of India (RBI) have tried to battle with the difficulties with intelligence and determination. The failure lay in institutional capacity, in the impersonal working of incentives and information. The solutions lie in such institutional reform.
 
Market-based credit risk measures show that YES Bank was in a difficult zone from