it could do so based on a high degree of analytical depth and information sharing at a global level that the central banks ’ global cooperation has been able to develop over time. these analytical contributions assisted in driving the strong and coordinated policy response when the crisis erupted. we have now scaled back our cross - border operations as markets have recovered, but the spirit of cooperation and the readiness to work together is stronger than ever. regulatory arbitrage but as much as some aspects of global governance appear to have passed the severe test of the global crisis, we should remember the significant shortcomings that may have contributed to creating the conditions for the crisis to happen in the first place. one is the lack of coordination in financial regulation that was pervasive before the crisis and which encouraged financial institutions to engage in a large degree of regulatory arbitrage. this was the unavoidable result of the fact that while financial players were becoming increasingly global, and despite the remarkable efforts of the basel committee in respect of the banking sector, financial regulation remained largely national, with only relatively weak coordination at the international level. the dramatic under - supply of the global public good of international financial stability is an area where reform is essential. global imbalances another shortcoming that needs to be addressed for the future was the insufficient orientation of macroeconomic policies towards medium - term stability and sustainability. this led to the build - up of unsustainable external imbalances between deficit and surplus economies prior to the crisis. although warnings had been voiced, including by the imf, about the risks of a disorderly adjustment, there was no effective mechanism to influence macroeconomic and structural policies in key countries where those policies appeared unsustainable from the standpoint of global economic and financial stability. this must change – and it requires both the work of international institutions and the cooperation of national authorities. 3. the evolution of global governance let me turn to the question of how global governance is evolving after the crisis. the scope of international cooperation has been significantly broadened. after an initially hesitant response, governments implemented broadly coordinated policies, both within the eu as well as at the global level under the aegis of the g20. and central banks were able to take quick, decisive and coordinated action at short notice. but the crisis also showed that gaps in the system of global governance – in terms of both efficiency and legitimacy – have to be filled. this can be done – indeed, it is being done – by strengthening the mandate of

their adf system. as is well known, xbrl system adopted by the reserve bank in 2008 is already benefitting the banks as well as the reserve bank as an online single point data submission / dissemination platform following the international standards. so far 97 out of total 267 returns have been taken up in xbrl system. banks have to gear up to meet the requirements in this regard as fast as possible. d. recently released guidelines of basel committee on banking supervision ( bcbs ) on corporate governance principles for banks highlights the board members having knowledge, inter alia, relating to role of information technology in risk governance. the guidelines also prescribe that the degree of sophistication of a bank ’ s risk management infrastructure – including, in particular, a sufficiently robust data infrastructure, data architecture and information technology infrastructure – should keep pace with developments such as balance sheet and revenue growth. realising that banks ’ information technology and data architectures were inadequate to support the broad management of financial risks during the global financial crisis that began in 2007, bcbs released the “ principles for effective risk data aggregation and risk reporting ” in 2013. the principles, inter alia, highlight that improving banks ’ risk data aggregation capabilities would lead to improvements in terms of strengthening the capability and the status of the risk function to make judgments and in turn to gain in efficiency, reduced probability of losses and enhanced strategic decision - making, and ultimately increased profitability. banks in india, therefore, have to strengthen the it systems for creating a robust compliance infrastructure to meet the international and national regulatory best practices. boards of banks, especially of the public sector banks, will have a critical role to play in this regard. 12. banks should also enable an adequately skilled people in the audit committee to manage the complexity of the is audit oversight. a designated member of the audit committee needs to possess the relevant knowledge of information systems, is controls and audit issues. the designated member should also have relevant competencies to understand the ultimate impact of deficiencies identified in it internal control framework by the is audit function. the board or its audit committee members could seek training to fill any gaps in the knowledge related to it risks and controls. where needed in the interregnum period services of an outside expert may be taken as a special invitee. bis central bankers ’ speeches information security and cyber threats 13. banks face a difficult challenge in the area of security management. with a growing population of internal and external users accessing an increasing number of applications