to become real game changers a. action points for the industry the following issues need to be addressed on priority basis in order to morph themselves as real game changers. bis central bankers ’ speeches 5. 1 customer protection issues protection of customers against unfair, deceptive or fraudulent practices has become top priority internationally after the crisis. incidentally, the bank has received and is receiving number of complaints against charging of exorbitant interest rates, raising of surrogate deposits under the garb of non - convertible debentures, various types of preference shares, tier ii bonds, etc. aggressive practices in re - possessing of automobiles in the case of auto loans and improper / opaque practices in selling the underlying gold jewellery in the case of gold loans are the two categories in which relatively more complaints are received / are being received by the reserve bank. nbfcs are often found not to practice fair practices code ( fpc ) in letter and spirit. developing a responsive and proper grievance redressal mechanism is the more important agenda in the context of this action point. 5. 2 camouflaging public deposits nbfcs have been prone to adopt variety of instruments / ways of accepting camouflaged public deposits for resource mobilisation viz., use of cumulative redeemable preference shares ( crps ) / convertible preference shares ( ccps ) / ncds / tier 2 capitals. these instruments are generally marketed as any other deposit products mostly by agents. regulators should distinguish tiny differences in a clear manner to check and control nbfcs which are raising resources through camouflaged public deposits. furthermore, complaints are received that deposit receipts issued to customers reveal that the deposits are accepted on behalf of other group companies, whose operations are neither known / are opaque. 5. 3 improving corporate governance standards to become real game changers, business transparency is inevitable for any financial entity. in the case of nbfcs, there is an imperative for adopting good corporate governance practices. rbi has already prescribed a governance code for nbfcs as part of their best practices ; these include constitution of risk management, audit and nomination committees, disclosure and transparency. when due diligence was undertaken on significant shareholders and directors at the time of registration it was observed there are no prescriptions for qualifications for directors, change in directors etc. 5. 4 capacity building nbfcs on both individual and collective basis need to work towards building a responsive ecosystem for capacity building ; since in the medium to long term, it is the

chang yong rhee : speech - 74th anniversary of the bank of korea speech by mr chang yong rhee, governor of the bank of korea, to commemorate the 74th anniversary of the bank of korea, seoul, 12 june 2024. * * * i would like to thank byungkuk kim, yeonkyo choi and youngrae kim for their help in preparing this speech. * this is an unofficial translation of the original speech released on 12 june 2024. dear fellow bank of korea colleagues, today marks the 74th anniversary of the establishment of the bank of korea. i wish to express my sincere gratitude to our predecessors who have led us to where we are today and to the esteemed members of the monetary policy board who are always striving to safeguard our national economy. i would also like to thank all our dedicated staff for their hard work in their respective roles during these challenging times. additionally, i extend my appreciation to everyone who supports and encourages us, particularly the families of our staff. today is more meaningful to me personally because it marks the first anniversary of the second half of my tenure, two years after i joined the bank. rather than looking back over the past two years, i would like to discuss the road ahead. the challenges we face now are critical, and how we handle them will influence how our past efforts are judged. turning first to the monetary policy environment, i am relieved to see signs that our economy has been recovering faster than previously expected, as gdp growth in the last quarter exceeded expectations. behind these growth indicators, however, there is a clear difference in the pace of recovery between exports and domestic demand, and even within the domestic sector, the perceived recovery varies significantly across segments. while inflation continues to decline, upside risks have increased due to stronger - than - expected growth and higher exchange rate volatility due to uncertainties in major countries'monetary policies, along with persistent geopolitical risks. i understand that many people are still suffering from high inflation and high interest rates. however, unless inflation is firmly stabilized, the vulnerable will face even greater difficulties due to decreasing real incomes and soaring living costs. moreover, if a premature pivot to a dovish stance leads back to unstable inflation and necessitates another rate hike, the policy cost at that time will be much higher. therefore, we need to remain patient and maintain our current tight monetary stance until we are confident that inflation will converge on the target level. of course,