’ intermediation function, including screening and monitoring of borrowers, can be severely impaired. once these problems become apparent to the wider market, risk sharing markets become dysfunctional or even disappear. if securitisation markets become illiquid, banks can be exposed to heightened risk from exposures to both credit risk ( defaults ), for example as loans can no longer be securitised, and to market risk from changes in the mark - to - market value of the securitised assets. in addition, when risk - sharing markets become illiquid, the signals from prices can become distorted or even disappear, rendering risk measurement especially challenging. a further requirement for well - functioning markets is that investors in securitisation instruments should have a firm understanding of the associated risks. recent events exposed deficits in this understanding that were partly related to problems with the availability of information and to the complexity of certain securitisation structures that obscured the links between the performance of the underlying assets and the price of the instruments. 21 ) while the securitisation framework in india has been reasonably prudent, certain imprudent practices have reportedly developed like origination of loans with the sole intention of immediate securitisation and securitisation of tranches of project loans even before the total disbursement is complete, thereby passing on the project implementation risk to investors. with a view to developing an orderly and healthy securitisation market, to ensure greater alignment of the interests of the originators and the investors as also to encourage the development of the securitisation activity in a manner consistent with the aforesaid objectives, several proposals for post - crisis reform were being considered internationally. central to this is the idea that originators should retain a portion of each securitisation originated, as a mechanism to better align incentives and ensure more effective screening of loans. in addition, a minimum period of retention of loans prior to securitisation is also considered desirable, to give comfort to the investors regarding the due diligence exercised by the originators. keeping in view the above objectives and the international work, rbi had framed guidelines regarding the minimum holding period and minimum retention requirement among other measures and the revision in its securitisation guidelines was issued in may, 2012. 22 ) in the context of banks applying for moving over to advanced approaches, there is a need to clearly distinguish between different pillar i risks. for example, we need to

vehicles. demand will also grow for green services, such as forest management, sustainable engineering and design, green finance, and emissions measurement and tracking solutions. fifth, inflation is likely to be higher during the long transition to net zero. higher energy prices will feed through into the production of many goods, and prices overall will rise. the bank of england estimates inflation will increase by nearly 0. 6 percentage by the early 2020s if there is an orderly transition to net zero and 2 percentage points by the early 2030s if the transition is disorderly. we are probably seeing a preview of that scenario currently. but it's not just energy prices. demand will surge for minerals such as copper, aluminium, cobalt, lithium, nickel, and rare earths, which are critical to various clean energy technologies, including wind turbines and electric vehicles. for example, solar or wind power plants use up to six times more copper than conventional power generation. according to the iea, a world on track for net - zero in 2050 will need six times as much of these materials in 2040 as it does today. the result is greenflation, or rising prices for these metals and minerals that are essential to renewable energy and technologies. sixth, the labour market will undergo a major adjustment. jobs will be lost in traditional carbon - intensive sectors but new jobs will be created in carbon - neutral industries. it is estimated that about 200 million jobs would be created and 185 million lost globally by 2050 from a net - zero transition. there will be a period of net job losses during the transition : foundry workers will not instantaneously be transformed into building - insulation experts. worker reskilling and redeployment will thus be crucial. identifying skills adjacencies will be a key part of worker retraining programmes. in singapore, a comprehensive strategy to green the economy is taking shape, with a focus on boosting energy and resource efficiency and creating good jobs. 6 / 9 bis central bankers'speeches in the petrochemical industry, all the major players have committed to reach net zero by 2050 and government agencies, industry players, and research institutes are developing capabilities in carbon capture and storage technologies. in the maritime industry, investments are being made to help our port terminals become net zero by 2050 and support the provision of low and zero carbon marine fuels such as ammonia, hydrogen, and biofuels. in road transport, singapore aims to do away with the internal combustion engine and switch