a prominent objective especially during a period of economic downturn. recognising the importance of effective asset quality management, reserve bank has issued various guidelines to banks, from time to time, on various aspects of asset quality management. preventive management 6. reserve bank has advised banks that the management of credit risk should receive the top management ’ s attention and the process should encompass : a ) measurement of risk through credit rating / scoring ; b ) quantifying the risk through estimating expected loan losses and unexpected loan losses c ) risk pricing on a scientific basis ; and d ) controlling the risk through effective loan review mechanism and portfolio management. 7. further, reserve bank has also advised the banks to put in place a robust credit risk management system which is sensitive and responsive to various factors affecting credit risk. the guidelines entail involvement of top management, including the board of directors of the bank in actively managing the credit risk of the banks. banks are required to put in place proactive credit risk management practices like annual / half - yearly industry studies and individual obligor reviews, credit audit which entails periodic credit calls that are documented, periodic visits of plant and business site, and at least quarterly management reviews of troubled exposures / weak credits. recent regulatory initiatives 8. recently, in january 2014, the reserve bank of india had released a comprehensive “ framework for revitalising distressed assets in the economy ”. the framework outlines a corrective action plan that will incentivise early identification of problem cases, timely restructuring of accounts which are considered to be viable, and taking prompt steps by banks for recovery or sale of unviable accounts. in addition, to address the issue of information asymmetry as also to identify the problem early, a central repository of information on large credits ( crilc ) to collect, store, and disseminate credit data to lenders, was set up. under this arrangement, banks are reporting credit information, including classification of an account as sma to crilc on all their borrowers having aggregate fund - based and non - fund based exposure of ₹50 million and above with them. bis central bankers ’ speeches 9. while having a proper credit risk management is very important for managing asset quality, another issue which is equally important is proper structuring of the credit facilities extended to various borrowers. while granting credit facilities, banks should set realistic repayment schedules on the basis of a proper analysis of cash flows of the borrowers. this

gabriel makhlouf : remarks - launch of the consumer protection discussion paper remarks by mr gabriel makhlouf, governor of the central bank of ireland, at the launch of the consumer protection discussion paper, dublin, 3 october 2022. * * * good morning everyone, i am delighted that you have been able to join us here in north wall quay this morning, for the launch of our consumer protection discussion paper. the publication of this paper marks the first step in what we hope will be an open conversation on important consumer protection issues. we want to take the time to listen to you so that we understand your perspectives in order to inform our consumer protection work. consumer protection is at the heart of everything the central bank does. our guiding principle, from our founding legislation, is that our " constant and predominant aim shall be the welfare of the people as a whole. " we harness our wide - ranging economic, financial stability and regulatory expertise to protect consumers'interests. i will hand you over to deputy governor derville rowland shortly who will speak about the consumer protection framework, the themes in the paper and the role our planned engagement will play in the evolution of the framework. but first let me explain why we are publishing this paper today. as you all know, financial services are undergoing major change and we are already in a period of transition driven by innovation and changes in consumer preferences. increasingly people are accessing their financial services digitally, while some continue to favour a traditional means of access. through this period of transition, the central bank aims to continue to protect consumers'interests. we want to better understand, anticipate and be forward - looking and responsive to the new environment and the far - reaching changes taking place in financial services. in our view, consumers'interests are best protected through having effectivelyfunctioning financial services markets made up of sustainable, resilient and well - run consumer - focused firms who provide availability and choice. positive consumer outcomes depend on firms acting in their customers'best interests, consumers being empowered to make informed decisions, and rules and regulations that provide users of financial services with a proportionate level of protection. the consumer protection code sets out the conditions in which this objective is fulfilled by firms. the code has served consumers well. it has established a set of rules and 1 / 2 bis - central bankers'speeches expectations for how firms should treat their customers and has allowed us to intervene to protect consumers. but with financial services evolving rapidly, the code must also