• the main elements of the supervisory model and the supervisory manual are in the process of being developed. • the ecb is preparing a framework regulation, setting out the main responsibilities of the ecb and national authorities and the main requirements set for banks in the ssm. • the main features of the ssm risk assessment system should be available and the list of significant banks entering into ssm direct supervision should be completed in the next few months. • provided that the ssm regulation is accepted and promulgated in time, the supervisory board of the ssm will be established in october 2013. • during late 2013 and the spring of 2014 the newly established ssm supervisory board carries out the needed consultations and then adopts all the basic documents setting out the operations of the ssm. • the ecb supervisory functions will be staffed during the remainder of 2013 and the beginning of 2014 in order to have the ssm fully operational as of october 2014. of particular relevance for the start of the ssm and a key element in confidence rebuilding will be the balance sheet assessment of banks to be conducted before the ssm is up and running. • the balance sheet assessment is intended to make sure that legacy asset problems will be detected and sufficiently addressed before the operational start of the ssm. • the plan is to have the bsa finalised in the spring 2014, after which pan - european stress tests will be conducted in close cooperation between the european banking authority and the ssm. the single resolution mechanism the need for swift and orderly resolution of failing cross - border banks is the achilles heel that needs to be addressed. europe needs to move from national to supranational resolution arrangements for significant banks. enhanced resolution policies complement and would be supported by the structural regulations proposed by the vickers commission in the uk and the liikanen report on the eu level. the single resolution mechanism will be based on the bank recovery and resolution directive. this will create an institutional framework with enhanced powers to restructure and wind down failing banks. • the new powers to bail - in bank debt holders are a crucial, element of the future resolution mechanism, which should limit the use of bail - outs significantly. the intention is that in the new regime, bail - in will be the rule, bail - out a rare exception. bis central bankers ’ speeches • • the draft brr directive requires that national resolution authorities cooperate with each other and that resolution colleges are established from all the resolution authorities of the countries where the

duvvuri subbarao : information technology and banking – a continuing agenda keynote address by dr duvvuri subbarao, governor of the reserve bank of india, at the banking technology awards 2008 of the institute for development & research in banking technology, hyderabad, 18 may 2009. * * * i am delighted to be here today to celebrate outstanding information technology achievements in the indian banking sector. we are all well aware of the significant contributions that indian it professionals have made in the world arena. in fact, when the phrase “ indian talent ” is used, it is often meant as a synonym for it excellence. it in the indian financial sector – the beginnings the use of technology in expanding banking has been a key focus area of the reserve bank. technological innovation not only enables a broader reach for consumer banking and financial services, but also enhances its capacity for continued and inclusive growth. there are several factors attributed to india ’ s high growth in the recent period – improved productivity, growing entrepreneurial spirit, and higher savings, to name the most important. but one factor usually goes unacknowledged – that is financial intermediation. i believe improvement in the quantum and quality of financial intermediation ranks along with other factors that i mentioned above as a key growth driver. and one of the factors that drove the improvement in the quantum and quality of financial intermediation is more wide spread and more efficient use of it. implementing it in an indian banking system dominated by government - owned banks has not been easy. in his book “ imagining india – ideas for the new century ”, nandan nilekani makes interesting references to this issue. he writes about his travels around the country in the early 1990s, speaking about the role of, what was then called in typical indian english as “ electronification ” in indian banking. after one such presentation, nandan writes, the chairman of a bank advised him to stop preaching, warning him that ( quote ), “ the unions will gherao you in your house! ” ( unquote ) nandan goes on to describe another presentation before an incredibly hostile audience, who dismissed out of hand all his ideas and suggestions. but at the end of the presentation, the union leader told him privately that both his sons were working for microsoft on software solutions. i am told that during the initial days of it implementation at the reserve bank, systems had to be smuggled into the office when “ the world was sleeping ”. happily for