acquire stressed loans under the transfer of loan exposure framework. similarly, for standard assets, the securitisation framework permits diverse set of investors to subscribe to the securitisation notes of underlying loans. by having a wider set of participants, it is envisaged that credit markets will become more vibrant, effective, and transparent. permitting securitisation of currently restricted asset classes the market for securitisation products is quickly catching up in india and is poised to grow manifold in years to come. our framework on securitisation issued in 2021 carries a negative list restricting a few asset classes from being securitised. but this is not a fixed exclusion. we constantly monitor the growth and maturity of market and are ready to take a well - thought - through call if some restricted assets could be securitised in current environment. conclusion to sum up, while credit is an important driver for the growth of economy from the financialisation perspective, we need a robust risk management framework to manage credit risk. the array of tools for credit risk management have evolved with prudential limits providing the regulatory back stops. to facilitate transfer of credit risks between entities in a fair and transparent manner several policy enablers have been put in place by the reserve bank with the objective of developing robust credit markets. as you may have observed the discussion of ‘ risk ’ was at the core of my deliberation today. as a regulator, we do acknowledge that risk cannot be avoided. after all, risk - and - reward dynamics is the soul of entire edifice of finance! it may be appropriate to recall few lines of a famous poem “ risk ” by the poet william arthur ward …. to hope is to risk despair, to try is to risk failure. but risks must be taken because the greatest hazard in life is to risk nothing … so, some risks must be taken. however, it is in our collective interest that we know the risk we are taking, assess it adequately, and acquire the capabilities to manage it. thank you, everyone. * * * * * * *

olli rehn : eternal challenges in monetary policy speech by mr olli rehn, governor of the bank of finland, at the 2023 bank of japan and institute for monetary and economic studies ( boj - imes ) conference, hosted by the institute for monetary and economic studies, tokyo, 1 june 2023. * * * accompanying presentation of the speech thank you, athanasios, and my sincere thanks to governor kuroda for the invitation. this conference, now under the firm leadership of governor ueda, continues to be a key event after 40 successful years. let me make two points on what i would call, neither old nor new, but perennial, eternal challenges in monetary policy. i will start with inflation expectations, and then discuss our monetary policy stance. the heavy cost of a de - anchoring of inflation expectations is one of the most agreed upon issues in central banking. after all, steering inflation towards our targets is largely about steering inflation expectations. slide 1 in the euro area, the inflation outlook continues to be too high for too long. although most measures of longer term inflation expectations currently stand at around our 2 % target, some indicators have edged up and warrant continued monitoring. a lasting rise in inflation expectations is an upside risk to inflation, also over the medium term. persistently high inflation rates are risky, particularly since they could make inflation expectations adaptive. this would be a dangerous development and must be decisively avoided. thanks to the increased extraction of information from micro data, we are now learning more about the formation of inflation expectations. professor weber, who is no stranger to the bank of finland, has shown us that we should analyse inflation expectations more deeply to gain a more profound understanding. this said, when going from the macro to the micro level, the issues tend to become more complex. this goes for survey data, as well, in that we also need a fuller psychological interpretation of expectation formation to better understand survey behaviour. my second point is on the policy stance in the current context. for central banks, there are substantial common global denominators. so, i found it particularly interesting when, yesterday, professor obstfeld drew our attention to the importance of global factors in determining real rates. in his recent work, professor obstfeld has also pointed to a risk that central banks may collectively go too far, as their restrictive policies would reinforce each other. 1 / 2 bis - central bankers'speeches it is fair to note that the