assessment of material risks. improving offsite capabilities and making supervision more system and process driven. illustratively, banks are required to have automated system - based asset classification with limited exceptions and tighter controls over such exceptions. 14. in october this year, rbi released daksh, a web - based end - to - end workflow application that will inter - alia facilitate better monitoring of compliance by supervised entities. offsite being data dependent, measures have been taken to strengthen the quality of data inputs. an endeavour is also being made to increase the use of advanced analytics, artificial intelligence and machine learning to assess material idiosyncratic and systemic risks so that risks can be proactively identified and mitigated. use of such techniques opens up a range of possibilities especially in monitoring and analysing unstructured data such as board notes, complaints, analyst reports, news, social media, etc. to provide leads on emerging supervisory concerns. 15. while we are strengthening offsite with greater use of sup - tech, the human element and onsite has not been forgotten. the college of supervisors has devised a bouquet of programs that caters to capacity building at all levels from foundation course for new recruits to refresher programmes for supervisors. further, a conscious attempt has been made to increase the two - way interactions with management of banks and financial institutions as well as statutory auditors to understand each other's perspective and gain an insight into various concerns. 16. these efforts are bearing fruit. today, i am happy to note that the indian banking sector is strong, stable and resilient poised to support economic growth. emerging issues 17. while we have managed to restore our financial system to health, it is not the time to rest, as challenges remain. having discussed the challenges of the last decade, i would like to discuss three emerging issues, namely, ( i ) the risks spill over from global 3 / 7 bis - central bankers'speeches events, ( ii ) the paradigm shift in banking driven by technology and ( iii ) potential use of data. a. spill - over risks from global events 18. events such as the russia - ukraine conflict reiterate the view that in today's interconnected globalised economy, no one is insulated from seemingly isolated events in a distant land. india does not have many trade linkages or dependence upon ukraine. however, we are bearing the second order inflationary effects through various transmission channels and overall global slow down

affected, generating negative financial loops. we should take into account as well that a high level of corporate debt, even if not leading to defaults, can still be a drag on investment in the following years, lowering productivity and economic growth, as the experience from the global financial crisis indeed shows. these considerations can provide a rationale to use public resources to assist firms with a high level of debt produced by an exogenous shock, such as the current pandemic, but which are viable based on their medium - term perspectives in terms of profitability and productivity. however, the design of public support programmes to help viable firms improve their solvency position poses serious design challenges, related to the selection of the firms receiving the aid and the design of a structure of incentives for those firms participating in these programmes. without adequate selection criteria, there could be a poor redistribution of limited productive resources, keeping low - productivity firms running or providing support to companies that do not need it. also, an inadequate design could leave aside viable firms that face solvency problems. 1 / 2 bis central bankers'speeches this calls for a careful design of these programmes and a permanent real time evaluation of them, which, in the end, requires close monitoring of the financial situation of both non - financial firms and banks. in this regard, the banco de espana has exerted much effort in recent months in assessing the implications of the covid - 19 shock for the corporate sector. new tools based on micro simulations have been developed, making an extensive use of our micro databases, including our central balance sheet data office database, which contains information of the non - financial sector, and the spanish central credit register, which contains information on all loans provided by spanish banks to firms. some of the results of these analyses have been presented today at this conference. we also plan to regularly update these results to take into account the changing economic environment and outlook. in this regard, let me also stress the relevance of firm surveys as a very useful tool for monitoring real time developments in the corporate sector, especially bearing in mind the long time lags of hard data at the micro level. in this regard, last november the banco de espana launched a new business activity survey to compile first - hand information on a quarterly basis about companies ’ activity in the current quarter and about the immediate outlook. the survey compiles qualitative information about firms ’ perceptions as to the course of turnover, employment and prices. given the current economic environment, additional