##ized supervisory approach has been adopted for commercial banks, nonbanking financial companies ( nbfcs ) and urban cooperative banks ( ucbs ), with greater emphasis on identifying and addressing the root causes of identified vulnerabilities. 13. to enhance the effectiveness of supervisory frameworks, the reserve bank has employed various analytical tools. these include an early warning system, stress testing models, vulnerability assessments, cyber key risk indicators, phishing and cyber reconnaissance exercises, targeted evaluations of compliance with kyc / aml norms and micro - data analytics, among others. additionally, the reserve bank is in the process of adopting advanced analytics, artificial intelligence, and machine learning 2 / 5 bis - central bankers'speeches into supervisory data, while taking necessary safeguards, to gain even deeper insights into the operations of supervised entities. these initiatives reflect the reserve bank's commitment towards harnessing the power of technology and data - driven approaches to strengthen its supervision. 14. realising the importance of adequate skill and capacity building in supervisors, the reserve bank has set up a dedicated college of supervisors ( cos ). the college has been conducting a large number of general and specialised training programmes. an integrated learning management system has also been rolled out to facilitate continuous learning and updation. focus areas for supervisors 15. moving forward, i would like to emphasize nine specific areas where supervisory rigor should be directed more emphatically. 16. firstly, governance is of paramount importance and invariably at the root cause of supervisory concerns. effective corporate governance and sound regulation go hand in hand, reinforcing each other. the recent bank failures in advanced economies have underscored the pressing need to address governance concerns head - on. 17. secondly, supervisors must closely examine the business models adopted by banks and meticulously assess whether these models align with the institutions'risk appetite. this evaluation should delve into the level of business growth projections, sustainability of earnings potential, extent of diversification, provisioning cover, and appropriate pricing mechanisms, etc. 18. thirdly, supervisors need to examine it issues holistically. it is crucial to determine whether banks have the capacity to develop robust it systems that align with their business strategies. future - proofing by banks of their it infrastructure becomes imperative, necessitating strategic investments in both capital and operational expenditure. as virtual work environments and cyber risks become more prevalent, effective it governance takes on heightened significance. 19. fourthly, supervisors must focus on the efficacy of assurance functions viz

designated bank accounts mostly anonymously or in fictitious names. such accounts are also used to affect such other crimes as blackmails, bill frauds, underground money centers, embezzlement and bribe taking. thus, using real names for bank accounts is an essential condition for effectively preventing and cracking down on illegal and crime activities. secondly, it is beneficial for banks to achieve a sustainable and sound development by improving fundamental management system, perfecting internal control system, decreasing operational risks and fulfilling social responsibility. one of the basic premises for repaying loans on time is that borrower should be genuine firms or individuals. if it is possible for a firm or individual to open an anonymous or fictitious account, it is very likely for the bank to face default because it could not find a genuine economic entity to be responsible for repaying the loans. at the same time, banks must perform anti - money laundering obligations spelled out in national laws and regulations by verifying customer ’ s identity with the aim of preventing money laundering crime and safeguarding financial security. finally, it is conducive to protecting public interests. many financial frauds are targeted at the general public. using real names for bank accounts will contribute to deterring financial fraud, thus to the greatest extent to protect public interests. meanwhile, it is essential to apply real name policy to some special financial services provided by banks, like loss reporting of deposit certificate and advance withdrawal of term deposit, which require customers to produce identity cards or other identification document in compliance with relevant rules, because it can not only decrease economic disputes arising from anonymous or fictitious accounts, but also facilitate the production and living of the masses and protect the fund security of the public and legitimate rights and interests of banks. using real names for bank accounts is a legal obligation for banks, enterprises and institutions and the public. in 2000, the state council promulgated an administrative regulation, entitled regulations on the use of real names for personal savings accounts. in 2003, the pbc decreed a ministry regulation, called administrative rules for rmb bank settlement accounts, which expanded the use of real names from personal accounts to corporate accounts. in 2006, the national people's congress enacted the law on antimoney laundering, a state law which established officially real name policy for bank accounts. the law specified that financial institutions shall establish customer identification systems in accordance with relative provisions, and they may not provide any service to or trade with an unidentified customer, nor establish any anonymous or fictitious account. at the same