on whether market participants were prepared adequately for margin calls in a severe stress. intermediaries reported being relatively unaffected by the increase in margin calls in march 2020. even for those intermediaries that experienced the largest increases in margin outflows relative to liquidity resources, the proportion of their liquidity resources this represented remained relatively small, amidst unprecedented central bank interventions to support liquidity. the picture on clients is more varied and the data less reliable. but there was evidence that some clients faced liquidity needs materially greater than anticipated. and turning high quality assets into cash to meet margin requirements was a problem for some participants. drawing on the findings in the report, cpmi, iosco and the bcbs have consulted on six potential areas for further work. i will group these under three heading : procyclicality ; transparency ; and preparedness. first, we need to ensure that the necessary pro - cyclicality of margin does not add unnecessarily to a systemic stress. on variation margin, this means tackling the issue on predictability and preparedness identified but also considering ways toward more efficient collection and distribution of variation margin around the system. on initial margin, it means looking at the trade - off between levels of margin in business as usual. this is why we have proposed an in - depth evaluation of the responsiveness of centrally cleared initial margin models to market stresses, with a focus on impacts and implications for ccp resources and the wider financial system. this would look into the degree and nature of ccp margin models ’ responsiveness to volatility and other market stresses – including impact, costs 5 / 6 bis central bankers'speeches and benefits of this responsiveness for ccp resources and the wider financial system. second, transparency. participants need to have sufficient information, data, and tools to be able to plan ahead – they need to be able to anticipate what margin calls might look like under stress, and how pro - cyclical they may be. we need to examine carefully whether more could be done, in addition to the information already made available by ccps, to help market participants to plan ahead. ideas that could be looked at in this area include : developing good practices for margin tools and simulators and disclosure of key modelling choices ; as well as promoting the use of consistent metrics and disclosures concerning procyclicality, responsiveness to volatility and model performance. finally, though reducing the impact of margin call in stress and

these institutions. quite often, the officials in hr departments virtually have no expertise or training in hr management and they land there more as a matter of providence than by design. the failure of the hr personnel in the banks and its impact on their performance has also got partly masked due to lack of competition in the banking segment. 5. in fact, until the opening of the economy in the early 90s, the banks in india generally neglected the human resource function. as i mentioned earlier, this apathy may largely be attributed to lack of competition and abundance of available opportunities which kept the banking sector profitable without breaking much sweat. even after opening up of the sector, the government control initially kept the wages under control. as availability of new jobs in other sectors in the post - liberalized economy improved, the banking sector started feeling the pinch. further, with the entry of new players in the banking sector armed with innovative products, the system as a whole and the older banks in particular started to face a widening gap in skill sets of human resource. the new private sector banks and foreign banks had a head start over their psb peers as on the back of a market related compensation structure, coupled with technology - supported delivery processes ; they were able to acquire younger and more talented staff with newer skills and competencies. the older banks, on the contrary, had to compete with the newer players with a huge baggage of disadvantages. the psbs also lost trained man power to the newer banks due to attractive compensation structure and better career progression opportunities. it is against this backdrop that hr function in banking sector has not only assumed utmost significance but is also faced with myriad challenges that we would discuss. foolproofing employees : hr challenges defining job roles 6. having set the broader context, let me now turn to specifics. what are the hr challenges in the banking sector and how can we “ foolproof ” our employees? in all my interaction with hr professionals in banks, i am told that lack of people is the biggest challenge. obviously, finding enough people in one of the most populous nations in the world cannot be a challenge. so, what they actually mean is that they are saddled with too many non - performers. 7. this brings me to the first step that i would suggest the banks to initiate towards making their employees “ foolproof ” and i begin by asking a few fundamental questions : “ do you know how many people you need for carrying out all activities in your bank? have you done a detailed