swaminathan j : supervision amidst emerging risks opening remarks by mr swaminathan j, deputy governor of the reserve bank of india, at the " high - level policy conference of central banks in the global south ", organised by the reserve bank of india as a part of commemoration of its 90th year, mumbai, 22 november 2024. * * * esteemed delegates from across the world, respected governor, deputy governors and all my colleagues from the reserve bank of india, ladies and gentlemen. a very good afternoon to you all. it is indeed my honour to deliver the opening remarks before such a distinguished panel comprising dr. john mushayavanhu, governor, reserve bank of zimbabwe ; mr. s. s. mundra, former deputy governor, rbi ; mr. jay surti, division chief, financial supervision and regulation division, monetary and capital markets department, imf ; mr. krishna sastry pendyala, partner, cyber security, e & y and the moderator for the panel, mr. m. nagaraju, secretary, department of financial services, government of india. the supervision of banks and financial institutions, as we understand it today, is a relatively recent development - dating back around fifty years1. however, the concept of overseeing banks is embedded in the very foundations of central banking. from the early days, central banks have fulfilled their role as the lender of last resort, ensuring that financial institutions remained solvent and protected against systemic crises. indeed, supervision has been the keystone2 that has supported the integrity and stability of the financial system, by protecting depositors'interests, and thereby fostering trust in the banking sector. as the world rapidly evolves, so does the nature of risks confronting the financial sector. technological advancements have brought incredible efficiencies but also significant vulnerabilities, such as cybersecurity threats and risks stemming from third - party dependencies. climate change, once considered a distant concern, now poses immediate and material risks to institutions and economies alike. added to this are the complexities of geopolitical uncertainties, volatile markets, and shifting macroeconomic trends. thus, the task of supervision has become more dynamic and critical than ever before. supervision, therefore, needs to evolve with the times and can no longer be just about enforcing compliance. instead, it needs to anticipate risks, respond swiftly to both foreseeable and unforeseen risks and foster resilience in the financial system.

to develop and maintain a forward - looking assessment of the risk profile of individual banks, proportionate to their systemic importance ; identify, assess and address risks emanating from banks and the banking system as a whole ; have a framework in place for early intervention ; and have plans in place, in partnership with other relevant authorities, to take action to resolve banks in an orderly manner if they become non - viable. 5 goodhart, c. a. e. ( 2000 ). the organisational structure of banking supervision. fsi occasional papers, financial stability institute, no. 1, november. pp. 20a€ “ 21. available at : https : / / www. bis. org / fsi / fsipapers01. pdf. 3 / 3 bis - central bankers'speeches