##tagion assessments, and systemic risk surveys to provide valuable insights into potential vulnerabilities that affect the financial sector. apart from inter - regulatory coordination, rbi also actively engages with the industry through regular engagements / interactions including conferences with the boards of supervised entities, periodic meetings with the mds & ceos, heads of assurance functions as well as interactions with auditors. having discussed the importance of domestic coordination, i would also like to emphasise the significance of global supervisory cooperation. historically, crises have acted as catalysts for bringing supervisors together to address shared challenges. for instance, the basel committee on banking supervision was formed in the aftermath of the herstatt bank failure, highlighting the necessity for a coordinated response to systemic risks. however, we should not wait for crises to play out before strengthening international collaboration. greater engagement for proactive horizon scanning of potential risks and vulnerabilities, along with discussions on strategies to mitigate and address these challenges, can enhance our collective resilience and crisis preparedness. indeed, as a part of our agenda for the next decade, rbi @ 100, the reserve bank intends to engage more with the central banks of the global south. the reserve bank also aims to establish a global model of risk - focused supervision by fostering a strong 2 / 3 bis - central bankers'speeches risk discovery and compliance culture, building a " through - the - cycle " risk assessment framework. reserve bank is working to create a comprehensive data analytics ecosystem to support its supervisory functions. with these thoughts in mind, i look forward to a rich and insightful panel discussion on how central banks can continue to enhance financial stability and build a resilient global financial system. thank you! 3 / 3 bis - central bankers'speeches

were unable to anticipate future downturns and build up suitable safeguards while giving loans. i do believe that the rising impaired assets is a “ governance ” issue as banks have forgotten the art of saying “ no ”, except, may be, to small borrowers. banks need to significantly improve their risk assessment capability and their ability to price risks, so that they take on only those risks that they understand and can effectively manage. i believe that this need is all the more pronounced in the case of public sector banks, which, at times, end up with assets that have been exited by private sector / foreign banks on account of inherent weaknesses. the ability to manage npas is important in order to preserve the strength of bank balance sheets and to retain the appetite to take on good risks. an attitude of complete risk aversion would not be appropriate as banks are in the business of taking risks, but with adequate safeguards. i note that npas are a recurrent theme in shri venugopal ’ s articles and hope that they do provide insights into how banks can manage this problem. another issue that i would like to bring up before you is the element of discrimination practiced by the banks in restructuring of loans. analysis of available data indicates that the larger borrowers have invariably received the benefit of restructuring of loans, while the restructuring in case of sme / agriculture loans has remained abysmally low. i believe that with timely intervention and support from the banks, this sector would have definitely shown much lower levels of impaired assets than it presently does. bis central bankers ’ speeches d ) financial inclusion despite several steps having been taken by the government and the reserve bank of india, the extent of exclusion in the indian financial system continues to be unacceptably high. the unbanked masses constitute a unique but important stakeholder group for banks, even though they may not be bank customers. meeting the expectations of this group through financial inclusion efforts presents a huge business opportunity for banks. while there is no “ one - size - fits - all ” approach to financial inclusion, it is important that banks recognize three important prerequisites for maximising the benefits of financial inclusion efforts. these are : • holistic approach to provision of financial services, not just credit or deposit alone • meeting the needs of small firms • focussing on segments of population excluded by gender or geographical remoteness banks need to focus on leveraging technology to create new business models and delivery channels that are customized