policy implications, balance of payments ( bop ) impact and the desirability of restricting gold import to corporates or banks were also flagged. the role of the rbi in gold policy, sequencing of changes in such a policy and finally the link with capital account convertibility were flagged for further debate. as you are aware, many of these issues have been debated since then, and there has been policy response also. policy response : a summary we have made some progress in liberalising gold policy since we met last. the policy on gold import has been further relaxed and non - resident indians ( nris ) are allowed to import 10 kgs of gold, against 5 kgs allowed previously. the exim policy for 1997 - 2002 has been modified and now, in addition to the existing canalising agencies, the rbi will be authorising banks to act as nominated agencies for importing gold into the country under various schemes viz., nri, sil and export replenishment / loans, etc. the tarapore committee on capital account convertibility has submitted its report and has made wide - ranging recommendations relating to gold, including a more liberal import policy for domestic consumption. the rbi has issued guidelines to banks to apply to it for becoming nominated agencies, and the first set of applications will be considered shortly. in the meantime, the customs have also modified the procedures for the import of gold - no longer requiring banks to be totally accountable for export obligations of the exporters. the standing committee on gold and precious metals in the rbi ( subrahmanyam committee ) has been expanded to include representatives of the ministries of finance and commerce. the committee is more active now in rendering advice to the rbi and the government. general response : a review the general response to the issues raised in the previous seminar can be described as one dominated by aggressive liberalisers, some advocating caution, only a few favouring no change in the existing policy and virtually none seeking total roll - back of the policy. there has been no mention of the mobilisation of idle gold for productive purposes or the establishment of a gold bank to raise resources. ( i ) let me summarise the arguments of aggressive liberalisers. - the gold industry, employing goldsmiths numbering about five lakhs, involving an annual turnover of about rs. 25, 000 crore, is kept out of any serious consideration in the current reform process. this reflects continuation of a gold - control mindset and the identification of all import,

kiyohiko g nishimura : the importance of developing financial safety nets and the role of central banks address by mr kiyohiko g nishimura, deputy governor of the bank of japan, at the annual conference of the international association of deposit insurers ( iadi ), tokyo, 27 october 2010. * i. * * introduction i am greatly honored and particularly delighted to have been invited to address this annual conference hosted by the international association of deposit insurers ( iadi ). two years have passed since the global financial crisis triggered by the failure of lehman brothers. authorities world - wide have made great efforts to contain the further deepening of the crisis and this process has confirmed the crucial importance of deposit insurance and other safety nets. however, at the same time, it has also become clear that there remain a number of issues to be addressed, in order to prevent any future crisis of such magnitude. as deposit insurance plays a central role in financial safety nets, it is of utmost importance for senior officials of deposit insurance organizations and relevant authorities world - wide to have the chance to discuss first - hand and intensively among themselves the future of financial safety nets. this conference is one such occasion. in my address today, i will talk about several issues which i believe are key to the development of effective financial safety nets, and about the role of central banks in maintaining financial stability. ii. stability of the financial system and financial safety nets current international discussions lively discussions are underway in various international forums as part of the effort to build a resilient financial system. the issues under consideration include ( i ) strengthening financial regulation and supervision, ( ii ) developing effective resolution regimes, ( iii ) raising the coverage limit of deposit insurance, and ( iv ) developing financial market infrastructures. all of these discussions are aimed, in one way or another, at preventing the failure of financial institutions and / or at containing financial crises. in this sense, these discussions all contribute to the improvement of financial safety nets in a broader sense, as they serve to protect the financial system from various kinds of shock. let me touch on some recent developments on these issues. with respect to financial regulation, a new framework for the quality and quantity of bank capital was agreed on in basel last month. i believe the new standards are attainable for japanese banks through efforts such as the accumulation of retained earnings, although the banks still need to improve their profitability as well as strengthen their capital bases. one of the main