institutions, these eu level regulations should be applied to all lenders providing housing loans. such regulations may not be needed right now. but they could be useful next time when the lending cycle starts to rise again. third, the eu legislation should explicitly allow the use of the so - called positive neutral countercyclical capital buffer requirement. national macroprudential authorities should be able to set that buffer requirement at a positive level during normal times. in times of unexpected and sudden crises, the buffer could be flexibly released, if needed, to support bank lending and economic recovery. 2 / 3 bis - central bankers'speeches dear friends, in addition to steven cecchetti's keynote starting in a minute, i believe you are eagerly awaiting the other two keynote speeches of this conference : alex jung's presentation on machine learning and michael platzer's on ai - generated synthetic data. before those, let me tell you about my forgotten history in computer programming. in high school – that is, only few years ago – i was an avid member of our school's automated data programming club. there we, for example, practised programming languages basic and fortran after school. unfortunately, the school did not have any computers! so, we wrote our basic and fortran codes only on paper. not surprisingly, the local football club's training matches, taking place at the same time, began to feel more attractive. so, the world lost one potential coder in me. i'll let you judge whether monetary policy was ultimately a winner or loser in that outcome. even more seriously, the potential threats and opportunities of artificial intelligence and machine learning are very hotly debated at the moment. i think we may assume that in the field of financial services, the developments in ai and machine learning can bring substantial benefits, for example in risk management, loan underwriting and customer behaviour analysis. the developments may also help the work of supervisors. that said, we should be aware of the potential dangers of the misuse of such powerful tools. above all, we should improve our understanding of these fascinating technological developments, also in order to make better policy choices. in that, the forthcoming keynote speeches will be most helpful. with these words, let me wish you a stimulating and productive conference! 3 / 3 bis - central bankers'speeches

at breakneck speed. industrial goods, steel, automotive components, resource extraction, beverages, cosmetics, pharmaceuticals, mobile communications, software and financial services are some of the sectors where considerable interest has been shown by indian corporates. the bcg research has shown that 88 % of the emerging market global players are driven by the need to gain access to new markets and profit pools. overseas markets are expected to bring higher margins, revenue and volumes, besides opportunities for further growth. energy security is another driving force behind global acquisitions. • liberalised guidelines for overseas investment coupled with lower interest rate hitherto facilitated indian corporates to invest overseas • the capex undertaken by indian industry coupled with buoyancy in economy has strengthened the balance sheet of corporates enabling them to look for inorganic growth by way of acquisitions outside india. • the confidence shown by the global business community, particularly, availability of foreign funds at competitive rates and acceptance of managerial skills of indian workforce has led to surge in lbo activities. • another trend which is prominent in india ’ s overseas investment is market access. by undertaking overseas acquisition transactions, indian corporates are gaining entry into regulated market of developed countries. the best example is pharmaceutical industry, where indian corporates equipped with usfda approved facilities are looking for acquisition in the regulated market for ease of registration processes. the manufacturing activities will still be in india entailing low cost advantage. • transfer of technology is another issue driving for overseas investments. the manufacture of certain products requires technology that is not available to the indian companies. by acquiring companies abroad, they also acquire advanced manufacturing technologies that further help reduction in the cost of production. • indian companies are also going abroad to obtain a new product mix or to acquire products that will otherwise require huge investments and a long time to manufacture indigenously. • deployment of excess production resources or better yield on assets is another driving force. the indian corporates engaged in oil exploration / drilling / rig manufacturing are getting good returns on their assets by deploying their assets in the companies acquired in the high yield market. • development of natural resources like mining, oil exploration etc. has given an opportunity to indian corporates, rich with cash and need for energy, to expand their wings in unchartered territory. • post quota regime has also given an impetus to indian corporates to look for overseas ventures for enhancing their r & d and logistics to cater to developed markets. indian textile industry with scalable capacities to cater developed markets is feeling handicapped because