. once implemented, it will introduce for the first time an internationally - agreed 3 % leverage ratio as a backstop to risk - based capital measures. the question is whether this formulation goes sufficiently far in tackling the consistency, incentives and uncertainty problems affecting risk - based standards. is 3 % inadequate? and, relatedly, should the backstop instead be a front stop? a widening array of officials and academics have recently opined on both questions, often answering yes to both ( admati and hellwig ( 2013 ), systemic risk council ( 2012 ), johnson ( 2013 ), haldane ( 2012 ), bis central bankers ’ speeches hoenig ( 2013 ), fisher ( 2013 ), norton ( 2013 ), king ( 2013 ), stein ( 2013 ), brown and vitter ( 2013 ) ). the recent legislative proposal by us senators sherrod brown and david vitter is one of the most radical proposals to date. it advocates a tiered set of leverage ratio standards, rising to 15 % for banks with assets in excess of $ 500 billion. risk - based standards would be jettisoned entirely. from a simplicity and robustness perspective, it has attractions. at the same time, the brown - vitter proposals clearly raise a host of practical questions. they are sufficiently far north of existing capital standards that they are perhaps at best seen as a ( possibly distant ) long - term resting place, not a practical near - term objective. there is also a question of whether removing risk - based standards is necessary or desirable. placing leverage and risk - based standards on a more equal footing might give us the best of both worlds, with them acting jointly as regulatory bookends. whatever the merits of particular proposals, it is entirely right that the official sector should continuously assess whether the financial system has adequate capital insurance to deal with too - big - to - fail problems. the emerging consensus, within academia, officialdom and among market participants, is that it has not. despite enormous progress in developing policy proposals, too big to fail is an itch that remains unscratched. were this debate to conclude that greater capital insurance was necessary, this would pose challenges to the world ’ s largest banks – but also opportunities. a more prudent capital rule could, over time, give regulators greater assurance. too - big - to - fail could, over time, be removed from our lexicon. over - complex regulation could, over time, be streamlined from our

6. firstly, banking is undergoing a significant technology revolution, driven by the emergence of fintech companies. this is pushing traditional banks to embrace digital transformation and become agile and innovative. while technology brings numerous 1 / 5 bis - central bankers'speeches benefits such as increased efficiency and improved customer experiences, it also presents varied risks. banks must, therefore, carefully manage the adoption of new technologies and ensure adequate controls and safeguards to address potential vulnerabilities. additionally, the reliance on third - party technology providers requires robust due diligence and risk management practices to mitigate the risks associated with outsourcing. 7. secondly, closely linked to technology, is the issue of data. the banking industry, by the nature of its business, possesses a wealth of data that can be leveraged for various purposes. this data covers customer information, financial transactions, credit histories, and more. while there are significant opportunities to derive value from this data, it is crucial to acknowledge and address the inherent risks associated with its handling, including those relating to data breaches and privacy concerns. 8. thirdly, in an increasingly inter - connected world, there are geopolitical and macroeconomic risks. political instability and trade tensions can have far - reaching implications on banks'customers, which in turn can put pressure on the banks themselves. similarly, macroeconomic developments such as the recent coordinated monetary tightening, can transmit risks to the banking sector. 9. thus, more than ever before, there is a need for both banks and banking supervisors to build capacities to handle technological advancements and navigate uncertain waters. this would entail enhancing knowledge and skills and investing in technology with a long - term vision. indian perspective 10. now, let me brief you on some of the works done in india. 11. india, as one of the fastest - growing economies in the world, has witnessed significant transformation in its banking sector in recent period. from being saddled with high non - performing assets, poor capital adequacy level, and significant losses, the indian banking sector today reflects strength, stability, and resilience, thanks to the joint efforts of the government, rbi, and the banks themselves. 12. over the past few years, the reserve bank has significantly enhanced its supervisory systems, transitioning from an entity - based approach to a more thematic and activity - based one. structural changes have been implemented in the supervisory architecture to improve agility, bring flexibility, and enhance specialization. a unified and harmon