the impact of crises, and to quickly and efficiently resolve them once they have materialized. bis central bankers ’ speeches public intervention in financial markets commonly implies a series of functions that can be classified into the categories of prevention and resolution. among the category of prevention one can mention the activities of monitoring and assessing risks ( two crucial functions of financial supervision ), and the application of a regulatory policy. a regulatory policy implies the use of rules ( i. e. regulations ) but also of preventive action ( e. g. to enforce rules ), and corrective action ( e. g. to lean against imbalances ). the resolution policy involves the use of rules, which are important to guarantee prompt and efficient resolution processes, the resolution and cleaning of institutions in trouble, and the correction of imbalances. many tools are used to fulfil the objectives of public intervention in financial markets : prudential regulation, control and supervision ( i. e. preventive tools ), and resolution mechanisms and emergency liquidity assistance ( i. e. resolution tools ). the set of all these functions and tools provides a financial safety net to the financial system. in general, the functions and tools of the financial safety net are allocated to different agencies. for example, it is generally the central bank which is responsible for the provision of emergency liquidity assistance. other responsibilities like prudential regulation, supervision, and deposit insurance are allocated inside the central bank in some jurisdictions and outside in others. in order to determine the most efficient governance structure for the financial safety net policymakers should consider the agencies explicit conflict of objectives, the potential conflict of opinions about key issues ( e. g. the intervention or the liquidation of a financial institution, the provision of short term emergency assistance, the authorization of mergers and acquisitions ), and the need for coordination. in addition to this, policymakers should consider the pros and cons of the unification versus the separation of financial safety net agencies on the grounds of their relative expertise, capabilities, reputation, credibility and institutional strength. moreover, the financial safety net affects and is affected by other functions like the conduction of monetary policy and fiscal policy. these effects should also be considered when designing financial stability institutions. we come back to this point in section 5. 3. micro - and macro - prudential perspectives sound risk management are needed not only at individual institutions but also at the financial system as a whole. the severity of the recent global financial crisis can only be explained

covid - 19 pandemic, there was a sharp fall in fixed capital investment and labour supply, which still remain below pre - pandemic levels. the weakening of human and physical capital will likely weigh on medium to long - term growth prospects of the region in an environment of reconfiguration of supply chains, elevated debt levels, tighter financing 3 unctad, ( 2022 ) world investment report. conditions and uncertainty related to trade and technology transfer. over the period 2022 - 30, the region ’ s potential output growth is projected by the world bank to slow to 4. 6 per cent a year from 6. 2 per cent a year in 2011 - 21. falling tfp growth is estimated to account for about three - fifths of the slowdown, with the remaining two - fifths attributable equally to slowing labour supply growth and capital accumulation. economic activity in south asia rebounded strongly from the recession caused by the pandemic, when its large informal sector was hard hit by job and income losses. output in the region is on track to grow by about 6. 0 per cent a year between 2022 and 2030, faster than the 2010s ’ annual average of 5. 5 per cent and only moderately slower than growth in the 2000s. this will make it the fastest growing emde region in the remainder of this decade as demographic trends expand the working age population, the investment rate remains elevated, and productivity growth continues to benefit from the shift of resources away from agriculture and informal activity. although population growth is expected to moderate, labour force growth will be supported by stabilisation of the participation rate after two decades of decline. south asia ’ s potential growth is projected to slow only marginally to 6. 1 per cent a year on average in the 2020s from 6. 2 per cent a year in the 2010s. the forecast of potential output growth through 2030 is underpinned mainly by a projected recovery in tfp growth. in central asia 4, the pandemic and the war in ukraine have taken a grievous toll, reversing recent progress in raising living standards and leaving deep economic wounds among vulnerable populations. the region ’ s output is estimated to have shrunk by 0. 3 per cent in 2022 and is expected to flatten in 2023, weakened by erosion of labour productivity, muted investment and scarred human capital. potential output growth is 4 which overlaps with emerging europe in the world bank ’