meet the capital needs of the psbs under basel iii norms particularly since the projections are based on minimum requirements. we also have to remember that pillar ii assessment has not taken off effectively / fully as of now. the psbs will have to chart out a clear capital raising plan over the next five years. the psbs should actively consider several options including, non - voting rights share capital, differential voting rights share capital, golden voting rights share capital, etc. bis central bankers ’ speeches b. secondly, there is a need to reflect on the holding company structure in respect of the psbs. the nayak committee recommendations in the matter look at the bank investment company structure from the limited perspective / single angle of separating the goi investments from the psbs. there are deeper ramifications on this aspect and the whole issue must be looked at from multiple dimensions including that of the financial stability perspective. the suggestions made in the shyamala gopinath report on the bank holding company structure need to be given a serious consideration. the objective must be threefold – i ) help reduce capital requirement impact on the goi ii ) financial stability perspective, and iii ) strengthening corporate governance by reducing government influence and interference ; c. thirdly, the performance appraisal system ( pas ) needs a complete revamp. currently the pas makes no meaningful distinction between individuals for identifying or deploying talent, skills and / or specialisation ; nor does it guide determining compensation. the system needs reshaping so as to serve as the mainstay for evaluating employees ’ performance, assessing compensation and developing leadership. d. fourthly, the public sector banks ( psbs ) have hardly any meaningful participation in the financial markets, i. e in the bcd instruments. this restricts / curtails the financial market development. a selected set of foreign banks and the new private sector banks dominate the financial markets in india. psbs need to engage proactively, especially, in the derivative instruments for hedging their risks. treasury function is relatively weak in psbs. well established and robust treasury is a must for the purpose ; they must build up specialisation and should have sufficient number of specialists. the vigilance aspect on treasury losses / losses from transactions will need to be rationalised just as in other areas of psb operations. e. fifthly, the psbs should have a relook on their portfolios. currently, their portfolio share in advances to agriculture, industries, services

christian kettel thomsen : risks related to geoeconomic fragmentation, cyber, and the green transition speech by mr christian kettel thomsen, governor of the national bank of denmark, at the annual meeting of finance denmark, copenhagen, 2 december 2024. * * * check against delivery introduction december is a month of tradition – a month when predictability reigns with christmas lights, christmas trees and rituals. for many years, we may have thought the same thing about globalisation – a stable and almost obvious tradition. however, we can no longer count on globalisation as a fixed backdrop. i would like to talk about that today. when i stood here last year, inflation was the most important macroeconomic issue. today, inflation is under control and the economy is well balanced. but unforeseen shocks to the economy and our everyday lives can occur quickly, as we have experienced in recent years. think of the pandemic, when denmark was locked down. from one day to the next we could not buy various goods because major international ports were closed or factory workers had been sent home. or russia's war in ukraine, which caused the price of energy to rise rapidly and dramatically. and i guess we are now in a situation where we are all unsure of what is going to happen in the coming years. as a result of wars, signs of disruption in international trade and other factors, we now face the risk of an increasingly polarised world. what we also call geoeconomic fragmentation. geoeconomic fragmentation geopolitics is affecting your customers'everyday lives in a way we probably have not seen since the cold war. trade barriers are on the rise, and many companies are considering moving production closer to their headquarters. there are also clear signs that some countries are trading less with each other today due to conflicting political interests. we can see this, for example, if we consider the world as two blocs centred around the eu and the us on one hand and china and russia on the other. if we compare the 1 / 6 bis - central bankers'speeches period before the war in ukraine with now, trade growth between the blocs has decreased significantly more than trade within the blocs. globalisation has also led to a marked specialisation of certain products. this means that in some cases production is concentrated in just a few countries. while this has economic benefits, it also poses a significant risk. when we become dependent on specific countries for strategically important goods, we create vulnerability