, who, according to the reserve bank of india guidelines, are those who do not repay deliberately despite having sufficient funds and a solid net worth. the public sector banks have even started publishing photographs of the borrowers in newspapers. maybe it is high time that we start considering to bring amendments to our own law to disclose the name of the top defaulters. or even consider the coordinated efforts of the four banks, with or without the blessing of the central bank so as to ensure a favourable and rapid outcome. the bad experience of our bankers sheds light on the fact that however meticulous they may have been, banking remains a risky business. the bank has lately been considering a system of information - sharing on cross - border loans although we do recognize the difficulty of accessing information on foreign clients. a good reputation requires conscientious regulatory compliance. the rapidly evolving financial landscape is keeping the regulator on its toes to ensure that we are up to the mark bis central bankers ’ speeches when it comes to international best practice. we champion a proactive and thorough approach to fraud risk management which includes among other things, putting in place a whistleblowing procedure and where it already exists to review it, and educating staff about fraud. we need to be alert to the growing impact of the prevalence of gambling in our country for it is l ’ appat du gain which motivated the public to invest in placements that offered unrealistically high returns. over the years, the bank of mauritius and the mauritius bankers association have developed a strong partnership. more than ever, we need to consolidate this partnership and live up to the four rs of a sound banking sector – regulation, reputation, results and resilience. together we can continue facing the daunting challenges that await the financial sector when it comes to the next - generation regulation. thank you. bis central bankers ’ speeches

##it for illicit activities. it is a matter of focusing on the “ know your customer ” principles and applying them to your internal customers as well. it should not be just a ‘ tick - box ’ approach but rather a ‘ judgmentbased ’ approach. most of the time, it is at the level of the front - liners that the application of this ‘ judgment - based ’ approach starts. the front - liners need to be well - versed in compliance legislation, manuals and procedures and be able to detect suspicious transactions at an early stage, thus minimising the risks of fraud. it is important that ongoing reviews of bank personnel are conducted at all levels as bank officers may be involved in promoting such schemes. our investigation has revealed that some banks have not been abiding scrupulously by anti - money laundering laws and guidelines. five of them would be imposed hefty fines with the concurrence of the director of public prosecutions. recently four of our banks made a very bad deal with indian corporates. rs2. 7 billion out of total facilities of rs3. 5 billion turned out to be impaired. they represent 0. 9 % of the total assets of the four banks and if we take into account provisioning already made, this ratio comes down to 0. 3 % only. this is only a drop in the bucket and there is no need for the public to be alarmed. depositors ’ money is not at risk. this bad deal sends a warning signal to the banking sector about the level of non - performing loans ( npl ). historically the npl of the segment b business has been low, dragging down the overall npl of the banking sector. banks need to be extra careful when extending crossborder credit. they need to have a proper understanding of the legal infrastructure, the banking and regulatory landscape and the debt recovery processes of the country with which they intend to do business. in india, the cumbersome process of crystallizing collateral led some banks to resort to naming and shaming their non - performing corporate customers. in the midst of growing protest, the central information commission of india “ is convinced that the benefits accruing to the economic and moral fabric of the country far outweigh any damage to the fiduciary relationship of bankers and their customers if the details of the top defaulters are disclosed ”. the naming and shaming of bad borrowers apply to wilful defaulters of public sector banks