funding model where the bank was excessively dependent on cash deposits from the securitisation master trust but with a hard rating agency trigger linking that funding to the position of the bank, thus creating a severe amplification of any stress? finally on northern rock, how would the bank deal with a funding stress when it was having to encumber such a high proportion of its good quality assets in order to over - collateralise its securitisation master trust? a very good example of the need for resolution plans is the case of lehmans in europe. two questions are relevant here : what should the resolution plan have contained ; and what changes to its organisation and operations might have made the massive task of dealing with lehmans more straightforward? you will, i hope, appreciate that i can only scratch the surface of the lehmans case in the time available so i apologise for the laundry list approach. starting with the useful content of a resolution plan : a detailed balance sheet for all relevant corporate entities in the group at the most recent month end ; a clear mapping of financial and operational interdependencies between affiliates ; wind - down plans for all business areas linked to a comprehensive information data room ; and a contact plan for major stakeholders. now, listing the changes to lehmans ’ organisation and operations that should have resulted from drawing up robust rrps : corporate entity based accounts and management information to supplement the business - line version ( because corporate entities fail ) ; clear segregation of handling client asset activities ; controls over depositing client money with affiliates ; employees hired by the entity for whom they work ; a clear record of each entity ’ s title to business and associated intellectual property ; robust risk systems that allow ready provenance of the balance sheet ; contracts for the provision of key business services ( eg banking systems ) that allow continuity of provision of services in the event of a resolution ; and arrangements for continuity of access to payment and settlement systems. this has been a very brief run through some very relevant case studies. but i hope it has illustrated the role that rrps should play and the pressing need to have them in place. rrps have come a long way in a short period of time, which is both essential and gratifying. but, of course, we haven ’ t actually produced any yet. this situation will not last much longer, certainly not in the uk, because the authorities are very keen to see real implementation of rrps, alongside the continuing international work on

fast reaching normal levels. even the automobile industry has recorded recovery across all segments. the labour market is strengthening, but mostly in manufacturing. although india ’ s merchandise exports have stayed above us $ 30 billion over the past 15 months, there has been a moderation in pace in may 2022, reflecting the renewed supply chain disruptions in the wake of the war. yet, bucking the global decline, india registered robust growth in manufacturing export orders. import growth is broad - based, taking the trade deficit to its highest monthly level in may 2022, but this is an indication that the recovery in domestic economic activity is gathering strength. seen in the broader context of balance of payments – which is a summary record of all of india ’ s external transactions – the decline in india ’ s current account deficit ( cad ) to 1. 5 per cent of gdp in the fourth quarter from 2. 6 per cent in the third quarter of 2021 - 22 augurs well for india ’ s external viability as it is backed by strong merchandise export performance, rising net earnings from computer and business services and a rejuvenation of remittances by overseas indians from pandemic lows. on an annual basis, therefore, the cad turned out to be a modest 1. 2 per cent of gdp in 2021 - 22, with the intrinsic strength of india ’ s foreign exchange earnings mitigating the terms of trade shocks imposed by geopolitical spillovers and the surge in import demand. with foodgrains production touching a record level for the sixth consecutive year in 2021 - 22, food security has been bolstered amidst widespread global shortages. as of may 31, 2022 the stock of rice and wheat stood at 3. 7 and 4. 2 times the quarterly buffer norms. minimum support prices ( msp ) for 14 major kharif crops for the marketing season of 2022 - 23 have been announced, but upward revisions have been modest, averaging 6. 1 per cent, which is a positive for the inflation outlook. in the industrial sector, the headline manufacturing purchasing managers ’ index ( pmi ) maintained its improvement in may 2022, turning out to be among the highest in the world. while the expansion was led by an increase in factory orders and sales, the increase in input cost pressures remains a point of concern. the pmi services accelerated in may 2022, marking a solid recovery. the business expectations index ( bei ) for services expanded for the tenth successive month, but