partner in the continuous improvement of the regulated entity's practices, fostering a culture of responsiveness and excellence in customer service. guiding the regulated entities in mitigating the complaints finally, internal ombudsman, on a periodical basis, should proactively provide their inputs on the patterns of complaints received, and guide the regulated entity in taking 2 / 5 bis - central bankers'speeches remedial measures to address recurring complaints. i believe this to be one of the most crucial aspects of the role of internal ombudsman in contributing to a more responsive and consumer - centric operational framework within the regulated entity. role of the regulated entities while i have spoken at length on the role of the internal ombudsman, the role played by the board and management of regulated entity is also important to ensure the effectiveness of this function. it is often observed that the regulated entities are materially compliant with the letter of the regulations on internal ombudsman, but the expected outcome of the scheme remains below potential. this also manifests in the ever - rising trend of complaints against the regulated entities under alternate grievance redress mechanism of the reserve bank. many of these complaints escalated to the rbi ombudsman could have very well been resolved by the regulated entity itself. at times there is a perception that the internal ombudsman, acting independently to address customer grievances, could introduce complexities or delays into the streamlined functioning of the business. as a result, some entities do not escalate the complaints to io thereby making a sub - optimal use of the mechanism. however, it is important to recognize that the role of the internal ombudsman is not intended to impede but rather to ensure fairness, transparency, and adherence to regulatory standards. regulated entities must appreciate that a well - functioning internal ombudsman mechanism is beneficial for all stakeholders. apart from reducing the hassles of customers needing to approach alternate fora, it safeguards the regulated entity from reputation risk by reducing the chances of rejections of genuine grievances being subsequently overturned by alternate grievance redressal for a such as the rbi ombudsman. therefore, i would urge regulated entities to make efforts to reorient their grievance redress framework to support the internal ombudsman mechanism which would ensure smooth functioning of the overall internal grievance redress process in the regulated entities. here, i would recommend the regulated entities to focus on

axel a weber : sixty years of bretton woods - back to the future? summarised address by professor axel a weber, president of the deutsche bundesbank, rome, 23 july 2004. * * * sixty years after the signing of the bretton woods agreement the purpose of international monetary cooperation is as relevant today as it was in the 1940s : maintaining stability. the international financial and monetary system has, however, changed tremendously since harry dexter white and john maynard keynes devised the bretton woods system. the then agreed system of fixed exchange rates ended as early as in the 1970s. in the wake of economic and financial globalisation emerging market economies have been integrated into the world economy. capital account liberalisation and progress in information and communication technology propelled the development of new financial instruments. large - scale securitisation ultimately entailed a marked increase in international capital flows with a rising share of private capital flows. the ensuing deepening of international financial relations brought about a host of new opportunities in terms of economic development, investment and finance. however, opportunities and risks are two sides of one coin. the key question, namely how to maintain stability in a financially globalised world, was highlighted by a series of international financial crises during the 1980s and 1990s. each crisis was characterised by a very specific and complex set of causes. macroeconomic policy failure, indebtedness, and financial sector weakness belong to the major ingredients of financial crises. an unsustainable policy mix of monetary policy failing to deliver price stability, unsustainable fiscal policy and adherence to an exchange - rate parity that is out of line with the fundamentals will sooner or later put the currency under pressure. overindebtedness, be it in the public or private sector, especially if denominated in foreign currency and of short - term maturity, fixed exchange rates and financial sector weakness have repeatedly spawned turmoil in the international financial system. these crises have proven to be costly in terms of output and welfare losses. consequently, crisis prevention and cost - containment by orderly crisis resolution arise as key policy challenges. the bundesbank deems a market - based approach suitable for maintaining stability in the international financial system. in this concept, government at both the national and the international level, establishes an institutional framework that sets incentives for pursuing sustainable policies and prudent risk - taking. the lessons learnt from the recent episodes of financial distress have considerably expanded our knowledge of the origin, development and spread of crises. on the