would be poorer and in the short run there would be immense disruption. ” 11. the indian forex markets have been fairly stable in recent months. as you know, the reserve bank is mandated to maintain orderly conditions in the foreign exchange market. its intervention in the forex market is solely directed at curbing sudden turbulences not backed by the economic fundamentals. as has been said repeatedly, market operations are not intended to achieve any target exchange rate or band of rates. it must be pointed out that the exchange rate dynamics in india for more than a decade has been driven by capital flows rather than current account balances. as an aside, india has mostly run a current account deficit, notwithstanding a bilateral trade surplus with the us, marginally more than usd 20 billion during 2018. though long - term flows related to fdi and long - term debt have been fairly stable keeping in tandem with the economic fundamentals, the portfolio flows have their own dynamics depending as much on 2 / 3 bis central bankers'speeches attractiveness of returns of indian assets as the global factors determining their risk appetite. gyrations in the forex market in these circumstances leave no option other than market intervention to restore orderliness in the market. one also need to bear in mind that india ’ s forex reserves are borrowed reserves and not built out of export surplus. inasmuch as it provides a bulwark against sudden flow reversals, it enhances the country ’ s ability to cope with the fall out and indeed, contributes to global stability as well. 12. the policy regime is also oriented to providing adequate instruments of hedging to all resident economic agents who have exposure to a foreign currency as well as all non - residents who have a rupee exposure. the onshore markets are fairly deep and liquid but needs further strengthening. there is a wide menu of hedging instruments available and further expansion would be in keeping with understanding of their risk implication. in recent times, global institutions and investors have shown a healthy appetite for rupee denominated assets, which while ensuring flow of foreign exchange protects the indian issuers from exchange risk. this trend needs to be given further policy nudges. 13. in fine, i would like to say that though there are discouraging portents for the global economy and uncertainties arising from trade tensions and geopolitical developments, i am optimistic that coordinated policy response and dispute resolution within a multilateral framework will see us through the day. 14.

the ssm, which includes overseeing about 3, 500 less significant institutions. the total assets under ssm supervision amount to more than €26 trillion. ssm supervision is conducted by thousands of supervisors across europe, most of whom work for the 26 national supervisory authorities. the last 12 to 18 months were marked by a whole series of measures, including : • recruiting more than 1, 000 ecb supervisors and support staff ; bis central bankers ’ speeches • setting up central supervisory infrastructures ; • carrying out the comprehensive assessment and translating the results into supervisory actions ; • developing and implementing the ssm ’ s legal and methodological framework ; • setting up the joint supervisory teams and establishing a consistent and standardised database ; • identifying key risks within europe ’ s banking sector, drawing up our strategic plan for 2015 and planning our supervisory activities accordingly ; • enhancing our supervisory methodology further, in particular regarding the supervisory review and evaluation process ( srep ) ; • harmonising supervisory approaches and perspectives, going beyond options and national discretions ; • gaining an overview of the 19 national banking sectors with their 3, 500 less significant banks ; and • conducting day - to - day supervision of the 123 banking groups with 1, 100 directly supervised banks. all in all, in our first year of operation we have laid the foundation for tough and fair supervision. and i am satisfied with the results we have achieved. but as some of the well - wishers pointed out on our anniversary, there ’ s still room for development and improvement. we must remain vigilant, because banking supervision means keeping our eyes open for trouble – yes, we are paid to worry! the second year of the ssm will also see a lot of fine - tuning of our supervisory approach and methodologies. we will establish further administrative practices for specific topics relating to the banks ’ governance, risk management and internal controls. we will deepen our understanding of national specificities in banking sectors and national legal bases as we have to determine how much scope we have for harmonisation. let me now focus on one particular wish that was repeatedly expressed in the run - up to our anniversary : enhanced transparency regarding the ssm methodologies and concepts, in particular regarding srep. we take transparency seriously. it is closely related to accountability and communication. we need to communicate and be in a dialogue with a number of counterparts : individual banks foremost, other key stakeholders involved in banking supervision, such as banking associations or auditors, parliaments, and, last but not