##reast of industry developments, enhance their supervisory techniques, promote consistent standards and strengthen risk management practices to address emerging challenges. 27. capacity building through recruiting adequate number of quality staff and equipping them with the right skills and tools is an ongoing process that empowers supervisors to fulfil their roles in maintaining the stability and soundness of the banking sector. conclusion let me now conclude. 28. by staying abreast of technological advancements, monitoring the evolving risk landscape, keeping pace with regulatory developments, building necessary capacities and skills and adopting latest analytical tools, supervisors can more effectively fulfil their role in maintaining financial stability, protecting consumers, and fostering a resilient banking sector. learning from past experiences and collaborating across jurisdictions can help better navigate the challenges ahead. this can contribute to building a strong banking sector that supports sustainable economic growth in the asia - pacific region. 4 / 5 bis - central bankers'speeches the conference provides this platform and i believe that it shall prove to be very useful for all the participants. my best wishes to all of you. thank you! 5 / 5 bis - central bankers'speeches

. risk management, compliance and internal audit. the assurance functions serve as a critical safeguard providing independent and objective assessment of the bank's operations, risk management practices, and compliance with regulatory requirements. by assessing the quality of the assurance functions, supervisors can identify potential vulnerabilities, assess the effectiveness of internal controls, and mitigate risks before they become bigger. 20. fifthly, the compliance culture at the entire organisation level is another critical area that demands supervisory attention. while evaluating an institution's culture may pose challenges, supervisors must ascertain whether the compliance permeates horizontally and vertically within the institution and gets support from the senior management of the entity. 21. sixthly, communication is an indispensable tool for banking supervisors. it facilitates the effective transmission of expectations to supervised entities, supports 3 / 5 bis - central bankers'speeches compliance with regulations, promotes collaboration, enhances crisis management capabilities, and fosters public trust. by prioritizing clear and transparent communication, supervisors can strengthen their oversight role and contribute to a stable and resilient banking system. 22. seventh, as banking supervisors play a crucial role in maintaining financial stability and safeguarding the interests of depositors, intervening in a timely manner and utilizing supervisory powers judiciously is of paramount importance. to do so, it would be useful for supervisors to develop a formal escalation matrix for supervisory intervention that provides a structured approach for supervisors to determine the appropriate level of intervention and the corresponding actions to be taken. 23. eighth, data analytics empowers supervisors with the ability to extract valuable insights from vast amounts of data. this enables them to make data - driven decisions, identify risks, and take timely actions to safeguard financial stability. by leveraging the power of data analytics, banking supervisors can considerably strengthen their supervisory frameworks. 24. lastly, supervisors must strengthen their market intelligence capabilities. media inputs, including social media, can be extremely useful in identifying emerging issues. whistle - blower complaints, often viewed as channels for redressal, have also become valuable sources of market intelligence. importance of capacity building 25. before i conclude, i would like to highlight the importance of capacity building. as banks adopt new technologies, it is essential for supervisors to be equipped with the necessary knowledge, skills, and resources to effectively supervise and regulate these advancements. 26. in today's rapidly evolving banking landscape, supervisors cannot afford to stay behind the curve. it is essential for banking supervisors to stay ab