obligations to current and prospective borrowers is that they remain profitable and solvent. it is in this context that following regulatory actions have been launched in recent past which are a fair mix of both, prudent regulation and right incentives to support growth with proper risk management : • guidelines on “ early recognition of financial distress, prompt steps for resolution and fair recovery for lenders : framework for revitalizing distressed assets in the economy covering formation of joint lenders ’ forum ( jlf ), corrective action plan ( cap ), “ refinancing of project loans ”, “ sale of npas by banks ” to facilitate early recognition / resolution of financial distress • banks permitted to grant an extended debt repayment period to their borrowers in long - gestation projects ( “ 5 / 25 ” scheme ) • enabled banks to take steps for strategic debt conversion ( sdr ) giving them right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package • enhanced fraud monitoring framework • issuance of long term infrastructure bonds to facilitate financing of long term infra projects • revoking forbearance on restructuring certain other regulatory measures like revision of the single / group borrower exposure limits and identification of d - sibs, etc. have also been initiated. role of the auditor community in promoting sustainable growth 18. let me now turn to some messages that i would like to give the auditor community present here. first of all let me compliment you for the very critical role that you play in keeping the banking sector healthy by auditing the balance sheets of banks and that of the borrowers to whom the banks lend. i would, however, begin on a light - hearted note. i quote former aig vice chairman jacob frenkel, who, in the aftermath of the financial crisis, once bis central bankers ’ speeches quipped, “ the left side of the balance sheet has nothing right and the right side of the balance sheet has nothing left. but they are equal to each other. so accounting - wise, we are fine. ” i am sure we don ’ t want our accounting system to be fine like this. 19. external auditors play a vital role in maintaining market confidence in audited financial statements. in the case of the banking industry, this role is particularly relevant to financial stability given banks ’ financial intermediation function within the economy as a whole. core principle 27 of the basel committee ’ s core principles for effective banking

ensures their views are not influenced by those of more senior members. the senior deputy governor speaks next, followed lastly by the governor. they express their views, which leads to further discussions. we then go around the table again, with members presenting their opinions on monetary policy and debating the rate decision. 4 / 7 bis - central bankers'speeches the process is not set in stone. the content and format of our discussions are adapted to the situation and vary depending on our thinking about the economic environment and risk landscape. for example, when i started at the bank in march 2023, a number of regional banks in the united states had just failed. questions about financial stability were at the forefront of our discussions. in recent months, an important focus of our discussions has been the stickiness of inflation in prices for certain services, including shelter. but how is the decision actually reached after all of these deliberations? unlike other central banks, such as the us federal reserve or the bank of england, where members vote, the bank of canada makes decisions by consensus. members must therefore all agree on the course of action, even if we had different points of view when we walked into the rasminsky room. and it might not come as a surprise that we do not always agree on everything. in fact, it's completely normal that members have differences of opinion. after all, each member of governing council has distinct expertise stemming from their past experiences and educational background. but the diversity of our expertise is exactly what makes it possible to have detailed and constructive discussions that lead to informed decision - making. so, how do we arrive at a consensus despite our differences of opinion? here, the organic nature of our deliberations plays a key role. at times, points raised by other members may lead us to fine - tune or rethink the way we've interpreted the data. or a colleague may raise a point or highlight issues that others had not originally considered. in my opinion, the need to arrive at a consensus strengthens our decision - making process. we must carefully consider the diversity of opinions within governing council and discuss among ourselves to arrive at a common position. i should also mention that reaching a consensus does not mean that all members of governing council share the same point of view on the economic outlook or the path for interest rates in the coming months. it means that members come to an agreement about the best decision to make at a particular moment in time. 2 and the truth is that