have set up to fulfil long - term economic objectives. 23 21 such a policy would have some similarities with automatic stabilisers. these are also state contingent in the sense that they start to work when something special occurs, for example when unemployment starts to rise. of course, it is crucial to evaluate policy and require it to be effective, whether the policy is state contingent or time contingent. my impression is that the issue of whether fiscal policy should play a more active role and whether the fiscal frameworks should be reviewed is starting to be raised more and more in the economic policy debate : see, for example, calmfors ( 2021 ) for sweden and ubide ( 2021 ) and lane ( 2021 ) for the euro area. this is also underlined by the fact that the eso, the expert group for public economics, is planning a study in this field ; see https : / / eso. expertgrupp. se / pagaende - projekt /. however, it should be pointed out that this study will only refer to the interaction between monetary policy and fiscal policy in times of crisis, which i do not think is sufficient. a month ago, representatives of the government parties also argued, in a newspaper article, that the review of the fiscal policy framework planned for 2025 should be brought forward ( svenska dagbladet, 2021 ). in the statement of government policy on 30 november, prime minister magdalena andersson argued that swedish public finances are so strong that shifting from a surplus target to a balance target is justified. there are also, of course, 12 to be even more concrete, one idea could be to give the swedish fiscal policy council, or some other body, the task of continuously evaluating whether fiscal policy is keeping to the announced plan and delivering the expected results. consideration could also be given to broadening the mandate to include analyses of how overall macroeconomic policy is being conducted. monetary policy would thus also be analysed in parallel with fiscal policy in an overall economic policy context. as i have tried to convey, fiscal policy and monetary policy have become more interdependent than before and it would be valuable if a body were to continuously shed light on and keep us aware of this fact. sweden has good prerequisites the prerequisites for allowing fiscal policy to play this kind of more active role differ from country to country. as i see it, however, they are particularly good in sweden ’ s case

governance and conduct prudential regulation and conduct regulation denote what is commonly known as twin peaks model for the regulations. in rbi, we are looking at these two aspects through the prism of governance with equal emphasis on conduct of business through prudence. it's no doubt essential for the management to deliver good performance but more importantly this should be achieved by adhering to acceptable customer and market conduct and best corporate governance practices. we often see that the matters of conduct do not get the priority or attention of the board which they should be getting. customer service, customer conduct, ethical employee behaviour, data privacy, cyber security are critical and important issues which assume even greater relevance in times of innovation, change and business disruptions. good or rather best practices in these areas are the key soft pillars which build the edifice of a successful financial institution, more so in these challenging times. therefore, there is a need to reflect on the role and expectations from the governance architecture viz., the board and its committees, the independent directors and the assurance functions in banks and other financial institutions on these issues. in fact, the board should drive a culture where the expectation would be to go beyond baseline compliance to regulatory and legal requirements and aim for higher, best - inindustry standards. to this end, the board must ensure a suitable policy framework for its own assessment regarding effectiveness and composition, in accordance with their strategies and risk profiles, both at the aggregated and dis - aggregated levels. concluding remarks 4 / 5 bis - central bankers'speeches as we strive to become a developed country by 2047, financial institutions will need extraordinary amounts of financial resources to support growth to realise our visions for a brighter tomorrow. raising these resources would not be a constraint for financial intermediaries with robust governance frameworks as they can command a governance premium. it is important in this context to gain and retain the trust of other stakeholders such as depositors and various providers of financial resources. this is best ensured by strong governance, control, and assurance functions in financial institutions. also, while we collectively aspire for an efficient financial intermediation with positive spill over to the real sectors, these aspirations are set in an increasingly competitive, diverse, and interconnected world. as the saying goes, the time to fix the roof is while the sun is shining. the banking sector in india at this juncture is sound, resilient, and financially healthy. so, the time is perhaps right to improve the plumbing by