horizontal management and more market orientation. the process leading to monetary policy actions entails a wide range of inputs involving the internal staff, market participants, academics, financial market experts and the bank ’ s board ( chart 3 ). chart 3 processes of monetary policy formulation several new institutional arrangements and work processes have been put in place to meet the needs of policy making in a complex and fast changing economic environment. at the apex of the policy process is the governor, assisted closely by deputy governors and guided by deliberations of the board of directors. a committee of the board meets every week to review the monetary, economic and financial conditions and renders advice on policy. there are several other standing and ad hoc committees or groups which play a critical role with regard to policy advice. an interdepartmental financial markets committee focuses on day - to - day market operations and tactics while periodic monetary policy strategy meetings analyse strategies on an ongoing basis. information dissemination and policy communication it is generally believed that greater information dissemination and policy communication could lead to better policy outcome. it is, however, not clear as to what extent the communication would result in shaping and managing expectations. for example, the us federal reserve, since 1994, appears to have been providing forward guidance, while the ecb appears to be in the mould of keeping the markets informed rather than guiding it. in india, a middle path is followed by sharing of both information and analysis. the stance of monetary policy and the rationale are communicated to the public in a variety of ways, the governor ’ s most important being the quarterly monetary policy statements. further, the policy measures are analysed in various statutory and non - statutory publications, speeches and press releases. information on areas relating to the economy, banking and financial sector is released with stringent standards of quality and timeliness. dissemination of information takes place through several channels ( chart 4 ). the reserve bank has also developed a real time database on the indian economy, which is available to the public through its website. chart 4 information dissemination and policy communication conclusions with the changing framework of monetary policy in indian from monetary targeting to an augmented multiple indictors approach, the operating targets and processes have also undergone a change. there has been a shift from quantitative intermediate targets to interest rates, as the development of financial markets enabled transmission of policy signals through the interest rate channel. at the same time, availability of multiple instruments such as crr, omo including laf and mss has provided

markets. since the london summit, a great deal has been accomplished. and the financial system is much safer as a result. but there are still some important elements that remain to be completed, and we need to get these across the finish line. today, i want to quickly review the highlights of what has been achieved and then turn to four areas that need further work : leverage limits ; bail - inable securities ; core funding markets ; and finally, risk disclosure, governance and culture. bis central bankers ’ speeches in a nutshell, my message is that while the roots of this crisis were in complex instruments and interactions, the foundational elements for a more resilient financial system are not complex : bigger capital and liquidity buffers combined with a leverage backstop, rigorous and proactive supervision, and robust financial system plumbing. but risk is complex. completing the reforms and then ensuring ongoing healthy vigilance requires investments in risk management by both the private sector and the public sector. risk management is hard work. it can't be replaced by simplistic rules. there are no shortcuts. and risk does not take holidays – it only hides. the completion of the ambitious reforms laid out five years ago is within reach. this is essential to a return to sustainable, natural growth in the global economy. let's get it done. what ’ s been achieved to make banks safer, reform started by strengthening the bank capital regime. under the new basel iii rules, the minimum capital requirement is being raised, the capital requirements for riskier activities are being increased and the definition of capital is being strengthened. all in, the largest banks will have to hold at least seven times as much high - quality capital as they did before the crisis. while basel iii calls for these changes to be implemented over the next six years, banks are not waiting to rebuild confidence in their creditworthiness. since the end of 2007, major banks in the united states and europe have increased their common equity capital by $ 615 billion and their common equity capital ratios by almost 30 per cent. national legislation has now been adopted to implement the basel iii capital framework in virtually all g - 20 jurisdictions. canada was one of the first jurisdictions to implement it. by the beginning of this year, all major canadian banks had met the stringent basel iii requirements – six years ahead of the generous deadline of january 1st, 2019. to end the problem of “ too big to fail, ” a three - pronged approach