the return on investment. the pursuit of such a shortterm objective goes against the basic tenets of sustainable development which aims at assessing the impact of today ’ s decision making on the future generations. where are the global banks of 80s and 90s today? some of the large ones which survived are now facing reputational risk with questions being raised by investors and regulators on money laundering and absence of governance culture. one of the main reasons for this kind of behaviour is that investors can maximise financial return on their investment and may not directly be exposed to the consequences of their actions on the society or environment as a whole. insider trading and colluding with corporate customers for short term profits on treasuries have down - sized many large financial conglomerates when the regulators catch up with their pace. for example, investors in petroleum companies can gain attractive shortterm returns from high oil prices. however, carbon emissions will have an impact on the longterm health of the economy as well as the environment. but what about the role of the large merchant bankers and financial institutions who invested in these companies? 37. secondly, the indifference towards environment by the financial sector arises for two main reasons. first, as we have seen, it is only interested in the maximisation of financial profits through high turnover and does not have a real concern in the quality of its investments but so long as they are profitable investments. this means that there is no ethical consideration of investments, or no consideration of “ bad ” externalities in the calculation of financial profits. further, accounting and reporting systems do not adequately convey potential environmental risks and therefore, financial markets are compelled to make decisions on exposures based on biased information. 38. thirdly, though financial markets are supposed to help to manage risks and deal with uncertainty, it is also true that higher turnover and enlarging risks leads to higher profits. as a result, one may get attracted to short - term financial profits irrespective of the risks associated with it and its effects on the real economy and society can be completely ignored ; for instance, in terms of job loss, company closures or systemic problems to the whole bis central bankers ’ speeches economy like what happened after global financial crisis. therefore unlike corporates, the financial sector is more prone to take higher risks. 39. fourthly, this sector is characterised by a great deal of sophistication and specialisation and tests the players ’ abilities for making investment decisions in a very short time in a

fast devours cash. constant investments have to be made to just keep even. thirdly, when a business grows, it is necessary to create a management team. young entrepreneurs often cannot afford to bring in an external management team. so, it is necessary to identify bis central bankers ’ speeches the core competencies of the people working with you. this planning should take place well in advance. lastly, when the business is a success the entrepreneur needs to ask what the business needs at this stage and whether he is concentrating on the right things. as successful entrepreneurs, they have gained experience and wisdom from their mistakes and going forward, it is necessary to ensure that the same mistakes are not repeated. e. need for financial infrastructure establishing a solid financial infrastructure ( credit registries / bureaus, collateral, and insolvency regimes ) should be a priority in the financial development agenda, as it can lower the costs and risks to financial institutions of serving msmes. bankruptcy regimes regulate the efficient exiting of the market, and make the resolution of multiple creditors ’ conflicting claims more orderly, resulting in more extensive opportunities for recovery by both the bankrupt entity and its creditors. stronger creditor rights improve access to finance. stronger creditor rights tend to have a higher number of loan accounts per adult population and also higher rates of private credit to gdp. there is a need for adequate and reliable credit information mechanism, such as an msme credit bureau, that serves the needs of both the msmes ’ and the potential lenders ’. transparency shall facilitate them in obtaining finances, getting favourable contracts and improving their business prospects. a world bank report stated that a good credit information infrastructure can contribute significantly towards assisting msmes ’ access to capital. the report further highlighted that small firms with access to credit bureaus have a 40 % chance of obtaining a loan, whereas firms without access to credit bureaus have only a 28 % chance of receiving a loan. therefore, significant opportunities exist to increase lending activities to msmes with the establishment of msme credit bureaus. a sound financial information infrastructure should improve transparency and disclosure for msmes in a cost - effective way, and help msmes build a credit history, which is critical in helping to address both challenges of information asymmetry and cost to serve. setting of credit information companies has already been approved by reserve bank of india. f. conclusion the recent past has been a challenging time for the banking sector in india. you, along with the entrepreneurs, have coped well with