I will be covering three basic topics. The Basecamp management, I'll touch upon dashboards and club central. The hybrid meetings, I have a surprise because we will be actually conducting like a mini hybrid meeting in this session. Let's move on to the Basecamp. Those of you who are presidents and VP education and secretary, you must be already knowing that you are called the Basecamp manager and what is a Basecamp manager? In reality, the VP education is the Basecamp manager, but because there are so many tasks to be done, and sometime we need to share tasks, those masters has determined that the president would support the VP education in that task as a Basecamp manager, and the secretary will be also there as a backup. So the three people are the Basecamp managers, and what is it that you need to do as a Basecamp manager? First of all, let's log into a Toastmaster profile. I'm currently a VP education of one of the clubs that I belong to. If I were to think about what are the things that I need to do as a VP education. First of all, I need to be familiar with the club central because that's where the heart of the system is, the club central. So if I go to leadership central and you go to club central, I am an ex-com member in three of the clubs, of the six clubs that I belong to, but I have the VP education role only in this trainer's Toastmasters club. So let me log into that from a Basecamp perspective. There are two things that are very important, I would say three things. The first thing you have to do, now that you are the incoming Basecamp managers, is first of all, go and check in the club central, what is the club contact information? Update it because besides getting prospects, those who want to join your club, Toastmasters uses this email to send out notifications whenever a member submits levels, completions. In fact, when Pathways first started, this was the only email that used to send out this information, but recently, about a year ago, they have changed it, so that VP education will always get that notification, regardless of what email address is there. So the first thing I would suggest is that you come here, update the club contact information, put the president's email perhaps, because he can monitor who's doing what and save it. The next thing that we need to understand is the club roster, and what's interesting in the club roster, from a VP education point of view, other than the members that are there, who are enrolled into Pathways. So when you look at the roster, you can identify if members are enrolled into Pathways, and that way, as a Basecamp manager, when new members join, if they have not yet enrolled into Pathways, you have not yet assigned a mentor to them, to work with them, to go through the Pathways Basecamp, then this is your indicator to say, okay, I need to assign a mentor to this member so that he can sit together, they can run through the Basecamp, select a path, and once the path is selected, it will appear that they are enrolled into Pathways. The next thing that we need to do is submitting the education awards, and this is one area which has become very confusing, especially for a VP education, because what happens is that you have your Basecamp, people are completing levels, but unless you submit the awards in Club Central, it will not reflect in his education profile. But the problem is that these two are not connected at all, which means you can come to submit education award, you can select any member, submit an education award that he might have completed or not completed in Basecamp. So your job actually now becomes a little more complicated to track what the member has done in Basecamp, and then if assuming that the member is a member of only one club, then discuss with the member, okay, you have completed the level, shall we submit your award in Club Central? So this is a manual process that you all have to be aware about. Sometimes people are not aware that these two are disconnected, so when they complete a level, they automatically assume that in their profile, they will see that this person has completed the award. But no, once you completed in Basecamp, come to Club Central and assuming that the member wants to give that award to your club, because if he's a dual member, that's another story, because he might say no, I want to submit that award to my other club. So then based on that decision, based on that agreement, you will submit the awards. Let me check if there are any questions. How do you see which pathways a member is enrolling? Let's move on to that. So let me log into Basecamp, because I'm a Basecamp manager, I can go to Basecamp. Currently, my home club is set to a club that I'm not a VP or a president or a secretary. That's why I don't see an option to go to Basecamp management. I can only go to my own curriculum. If I want to run Basecamp manager activities, I have to be logged into a club or my home club has to be set to the club that I am one of those roles. So trainers club, as I told you, I'm a VP education. If I change that, I get the option login to Basecamp manager. Let's log into Basecamp manager. As a Basecamp manager, we have only two tasks to do. One is whenever a member completes the levels, they will submit, I have completed a level and it will appear in your pending request. You should first get an email saying, a member has requested for level completion and when you log in to this, you will get pending request. As of now, there are no pending request. If there was, it will come as a line here with small tick mark. If once you tick it, then the level is completed. Of course, the question you may ask is, but KG, how do I simply click without validating? How do I validate? How do I know that the member has completed his projects properly? Well, that's another story for another day, I think, because in pathways, there is no way to validate, except by understanding if he is a member of your club, what are the projects that he or she has delivered during the period and you have to track them yourself. And based on that, once the person has completed, you will see, okay, that he or she is eligible for completion and you will approve the level so that they can move to the next level. But if the member is a member of dual clubs, then you have to go by assuming that the person has done the projects. If you doubt it, of course, you can always communicate and say, hey, have you really done this project? Which club did you do it? And then you will have that confidence to approve that level. But it's more of a manual process. But the heart of understanding what your members are doing is in this place called member progress. When you first open it, it might look, what am I doing here? What is available to me? How do I understand what my members are doing? And this is one of the, I would say, criticism that we have for pathways that it's not very intuitive. You do need some training to understand how to make the best use of it. And that's why I guess all of you are here today. So those of you who are doing the base camp manager first time, president or VP ad or secretary, once you come to this option, the easiest way for me to explain to you is to click on this option, the profile, it actually opens your profile. But don't worry, click on the profile and from there you get this option called view team. And that's where the magic happens because when you click on view team, you will get all your members from the club listed on the left-hand side. If you want to further investigate the status of that member, what he's doing, what she's doing, click on the member's name. And this takes you actually to the base camp profile of that member. As you can see here, this is not my profile. This is the member's profile. And from here, I can check their parts and learnings. What is it that they are doing? So I can see that this person is currently doing a mentoring program, active. But let me see if they have completed any parts. So I select this option and select completed. And I can see that this member has done dynamic leadership, strategic relationship. That means the member has already completed two parts. Let me go back to the profile team. And this is the other part of the equation. Sometimes you will see some members and you might not see some of your members listed here. There are two possibilities. One is that the member has not enrolled into pathways and you know where to go and check that. If you go to the club roster, you know that the member is enrolled or not. And if the member is enrolled, you should find the name here. The other possibility is that the member is a member of dual clubs and they have changed their home club to some other club. So if the home club is not your club, you will not see the member. And that can be a quite a challenge sometime because you want to manage, you want to check what the members are doing.  So you know that they have changed the home club to some other club. Let me check the profile of Priscilla, my wife. What is she doing? Let's check. I can see that she is doing engaging humour. Has she completed any parts? Click on completed parts? Yes, she also has done two parts. In fact, she is due for her distinguished host master. She has completed all the requirements and the only reason she has not submitted a DTM application is she wants to do it in the first week of July so that the award that she will get as a DTM will be applied to her club as one of the goals of the club because they have already become president distinguished this year. And that is another story because sometimes members complete their levels but strategically they might decide I don't want to submit it in this year. Is it right or wrong? I don't know, but that's what most members do because they look at it not only for their own gain but the gain of the club. If you look at the active parts, engaging humour, let's see where my wife has reached in her humour level. Has she reached level five? Is she really funny? So I can open the curriculum and see that she's still at level. So I have to wait for some more time to have a good laugh. So we can see that she has completed level 125%. If I click view details, I can see that she has done only the ice breaker project. So this is the way to do member by member analysis. Very simple. Click on the profile, click on the team, select the member and you can investigate the level, the part that they are at. And one more thing that you can do as a base camp manager is that when you look at any member and you look at their parts and learnings and let's say you want to check the completed projects, let's say presentation mastery and let's say we have level five or any of the level that are completed. As a base camp manager, you have the ability to print a certificate for them. And we used to do this when we were meeting in person. We used to print the certificates and present them during the meeting as appreciation from the club. Base camp manager, the VP education used to print it, then give it to the president. And at the end of the meeting, we used to hand out the certificates saying, hey, congratulations for completing your levels. The other thing that you can do in base camp as a manager is let me go home, member progress. So if you want to look at the entire club as a dashboard, like who has done what, then we have this different dashboards available to us. For example, level completion, you want to know which member has completed what levels we can do that, select one of the options and it will show you levels recently completed on base camp. If you want to see the updated details, click on the refresh button and it will take some time to refresh. As you can see at the bottom, it says refreshing now and it will give you the details of all the members who have completed their levels. If you click on this individual progress, it shows you, for example, all your members and at which level they are. Similarly, you can click on this arrow here, check the details and it will give you all the details of the member, what they have completed. If you want, you can also export it to Excel and then do further analysis. So this is essentially as a base camp manager, all that we do, we approve and then we monitor and there are different ways to monitor as I've shown you individually or as a group.


fuel prices alone are rising all other sectors are remaining fairly uh stable that is skew inflation skewed inflation skew inflation so it is correctly matched inflation specific to only some sectors then you have this inflation this inflation is different deflation is different what is the definition given there is deflation decrease in the prices of goods and services deflation what is disinflation decrease in the rate of inflation let's say india in india there is inflation of eight percentage but we want inflation to be brought down to four percentage if we bring down the rate of inflation it is it doesn't mean that the price is falling it means that the rate of growth of the price of the commodity is falling not the price of the commodity itself so all the the reparate increase that the rb is doing when they're increasing the reparate from six to six point five or whatever it is those are measures to control inflation right their intention is not to bring about deflation their intention is to bring about disinflation in the economy reduce the rate of inflation from six percentage to four percentage so disinflation is different deflation is different so here the answer is c one and two only so how is it if petrol increases most of things okay with petrol yes if petrol price rises most of the prices will rise but not necessarily true with respect to food items if there is poor monsoon food items prices will rise it need not result in industrial products price rising also it is not common skew inflation is not common usually all sectors rise together but sometimes it may happen that one sector alone rises the other sector doesn't rise and also fuel price rise may not immediately result in other sector price rising for a short while it may be skew inflation it is possible high no in theory it is possible going on so 20 answer is c 21 time starts okay so time out I think I have only one or two people who have given me the wrong answer okay three now before now so except the second statement all of the statements are correct um so second statement is wrong because customer does not have to pay what is tokenization when we enter our card details on websites like amazon and all those things we are giving our card details to amazon itself which is bringing a risk associated with the with our financial instruments like that card debit card or credit card instead if we request a tokenization what will happen is amazon or flip card they don't maintain our detail they take this particular customer and they take it to the bank and they say please convert it into token form which is a representation the actual data is not given a representation a representation like an id card id number is provided so amazon will only get to see your flip card will only get to see the id number they don't get to see the actual information that is associated with so it provides protection for a customer it refers to a replacement of actual card details with alternate code called token so the process is called a tokenization it shall be unique for a combination of card token requester here token requester is not us it is the uh say amazon or an entity like that and the device in which we are transacting okay customer pays for the service is wrong customer doesn't have to pay it if there is a payment associated the token requester they will do it customer doesn't have to pay it is provided as a benefit to the customer itself so b 1 and 3 is the correct answer okay moving to 22 time starts okay we're done with the time right yeah it's quite a lengthy statement i'll just wait for a few more seconds all the statements are quite lengthy all right so we'll start i don't expect upc to ask questions in this detail or depth with respect to this concept it's a fairly new concept the questions are likely to be more superficial but i just asked it so that you are familiar with it in case it goes to that extent so all your conventional questions about cbdc you would have already seen with respect to uh the fact that it is rba launch pilot program and all those things basic thing it is a crypto kind of a technology which is there and all these things this is a little deeper into the concept so rb is long separate digital currency for retail and wholesale segment which is itself is not very common knowledge right um so um that is correct actually so the symbol is what i have given there e that rupee sign hyphen r for retail and hyphen w for wholesale it actually launched rb launched these two as two separate pilot programs i think it launched wholesale first and then it launched retail and there is a significant difference in how it works as well the wholesale is actually entirely governed by the rb itself the entire money is in the is a liability on the all the throughout the entire thing is a liability on the rba but the transactions are recorded by the rb itself so if you are dealing with the digital rupee wholesale it is directly with the rba that you're dealing you go to the rba you get that converted and rba acts like a bank in this case which is not common okay but when it comes to retail now you would have read from a lot of places that cbdc itself means the role of bank itself will be invalid because rba directly does it with retail that is not how it works the bank is involved in this process it is to the bank as a consumer as a retail consumer we go to the bank we convert our currency to digital currency and the bank is the one which keeps the account with wholesale rba keeps the account with retail bank keeps the account so the role of the bank continues to exist when it comes to cbdc retail now this question was meant just to give information all statements are correct d is the correct answer okay there is nothing no trickery here just to give you that information so wholesale digital rupee is now for now it is limited to use in settlement of secondary market transactions in g6 that is the only place where it is used okay so rba looks at it as a mechanism to introduce there are these directly dealing with that digital rupee wholesale where only g-sector transactions entire g-sector transactions are governed by rba itself so it becomes easier for them whereas in retail it is in the form of tokens it represents your rupee you give a 10 rupee note you can convert it into a digital currency of the equivalent value so it's completely the same as you could say our currency without there actually being a physical thing so it's in the form of digital tokens represent legal tender issued in the same denominations as paper currency and coins for most of us we are not practically familiar with this because it's still a pilot program sometime in the future it is something that we might end up using as well okay just just be aware of it this is purely informative d is the correct answer here all three statements are correct okay so we are going to have a series of questions now based on banking so maybe i expect another 15 minutes or so should be done let's see seven questions 15 might be a bit of a stretch but let's see time starts okay we are about to run out of time all right so the explanation itself conveys it dvu will provide a convenient access a lot of people are very sure that b is the answer let's see so dvu will provide convenient access and enhance digital experience in an efficient paperless secured and connected environment it's very generic in statement the whole idea of ease of living of common citizens digital banking units everything about the first statement is just generic explanation of the concept they're correct okay second statement is where the trick lies they provide all services offered by a physical bank so when we say that it provides a digital experience it reduces the human involvement over there or paper trail involvement ask a simple question can the issue checkbook they cannot issue dvu's cannot issue a checkbook what dvu can do in a dvu you can raise a request for a checkbook but the issue of the checkbook is not done there it will be given by the physical bank it will send your home address okay or you can go to the branch office and collect it a lot of activities you can do for now some activities you cannot do you actually have to move to a physical bank the idea is for all those activities where you don't require a physical bank this is an alternative that is given lesser investment for the bank also because manpower requirement is lesser more easy access for common people also so they don't provide all services offered by a physical bank but they do provide a lot of services that are provided by a physical bank which need not be in physical form so second statement is wrong now third question all the schedule commercial banks oh i should have mentioned it as schedule commercial banks i cannot use a direct short form just like that okay all the schedule commercial banks other than rrbs payment banks and local area banks can set up dvu's it's correct it's structural it's from the rba website so one and three are corrected d is the correct answer here second statement is wrong because they don't provide all the facilities for all the services moving on to 24 time starts you're done with the time now we are so someone said d and then said sorry a um so let's look at the statements uh per payment aggregator so this is where sometimes your digital banking payment aggregation could be sometimes confusing similar kind of these are areas where i've got questions saying what is the difference between these two so digital banking units means sba sb itself has a digital banking unit something which represents sb itself you can actually go there basic infrastructure would be there it is doesn't digital banking unit doesn't mean that doesn't physically exist it doesn't have physical manpower over there just like a chaos that you have like an atm or something like that where you can go and do certain activities it doesn't it has very limited uh physical presence but it is still physically there are entities which are set up but payment aggregator is a different concept altogether so payment aggregator means so when you go to a platform let's say you go to flipkart and you buy a commodity when the transaction is happening who provides the bank transactions and all those things who's providing that web page where you can do all the transactions so you would have uh seen come across this term called as razor pay or moby quicken there are different terms that you may have come across so they are what we call as payment aggregators okay they provide the service of completing financial transactions on behalf of say amazon or flipkart or any of these any other any other store say anyone else who has an online store so not just online it could be actual physical stores as well you have your point of sale machines who's providing your qr quotes they are all payment aggregators whoever is providing those qr cards and enabling those transactions that is what is called as payment aggregators their entities that facilitate e-commerce sites and merchants to accept various payment instruments from customers for a complete completion of not pf of their payment obligations correct they eliminate the need for merchants to create a separate payment uh integration system of their own if payment aggregators don't exist let's say i own a store i have to put in all the infrastructure necessary for creating a payment system of my own that is not necessary because they take care of all the infrastructure that is there okay and then finally banks as well as non-bank pa is required a separate authorization from rba this is where there is an error so the third statement is wrong answer is a one and two only non-bank payment aggregators require a separate authorization but banks are already a part of the payment and settlement system of rba they don't need a separate they already have the license of being payment aggregators it is only non-bank pa is which require a separate authorization from rba as a part of payments and settlement system previously only banks were allowed to do payment and settlement activities now don't non-bank entities are also given the permission to do that so the third statement is wrong because banks don't require a separate authorization only non-bank pa is required that so answer is a one and two moving on upi pay now linkage time has started arindhita if you could mention the question that you are referring to it would be easier for me to give you an answer somewhere skip 23 i'll get back to it after this question we are on 25 now all right so we are this is nearly an informative question so both the statements here are correct he is the answer both the statements are correct so this was in a way a landmark event because it's happening for the first time the second statement is correct singapore is the first country with which india has launched cross border person to person payment facilities fast payment system of the two countries is what is being linked the linkage is a project between rba and monetary authority of singapore to link the payment system fast payment systems india has upi which is fast payment system similarly singapore has a mechanism called as pay now the link between upi and pay now where you can now transact from upi to pay now there is a linkage so we can easily send money from india to singapore or singapore to india and india has a lot of extra population in singapore okay so that is why this becomes or this gains prominence transactions between the countries now become faster and much more efficient okay so 25 the answer is both the statements 25 see both one and two okay so previously someone had asked a question about 23 so 23 the answer is D one and three second statement is wrong because it doesn't provide all the services offered by a physical bank that's the error there okay 26 now time starts stumbled at a later point i can maybe at the end if you can stay back then maybe i am done okay financial service institutions bureau um as the first statement itself says previously we had bank both bureau but the issue with bank both bureau is that um based on certain controversies and issues that came up the appointments made by bank both bureau has raised a lot of questions sometimes some seniors have been bypassed and without proper explanation so question marks have been raised on the functioning of bank both bureau so it necessitated the government to introduce a replacement body which is the financial service institutions bureau so it is a replacement of vbb and what was vbb's main mandate to make recommendations towards filling critical posts okay so that is the first statement is correct in that sense okay so second one the bureau will also be involved in formulating and developing business strategies for state and banks and help them in their fundraising plans is just explanation that's correct it would also monitor and assist the performance of public sector banks government owned financial institutions and insurance companies not just banks because previously it was bank both bureau now it also includes other government owned financial institutions and insurance companies also so that is an addition that is there so the first statement you would assume to be true because insurance or other financial institutions are involved then the third also has to be correct so in this context all the three statements are correct merely informative in nature so all three statements are correct just do read up a little more about how the members are appointed themselves but right now that may not be as important just know what is the role of fsiv but if you can read up a little more about it it could be useful for you okay so that was 26 answer is d okay moving to the last four questions 27 now the time starts i see a raised hand by dj if you could uh send me a text okay so you're done most people have got the answer right uh almost everyone who has answered so the answer here is c again merely explanatory in nature sebi has approved ssc it's a stock exchange so sebi will have a key role to play in this has approved ssc for the purpose of fundraising by social enterprises it's there in the name itself right uh social enterprises eligible to participate in ssc should be entities having social intent and impact as their primary goal see now uh both the statements are correct see both one and two are correct explanatory nature the idea is this if you are working as a company who doesn't have profit as your primary motive so it is applicable for non-profit organizations also even profit-oriented organizations but profit is not the key motive okay when you are a company where profit is not the key motive you might find extremely difficult to raise money from the conventional share market because anyone who goes to the conventional share market is thinking okay dividend or profit i will get a share of the profit in the form of dividend so that is the logic of investing in shares now they might find it difficult to raise money from there so the government has thought of this concept in the budget it was announced a year or so ago year or two ago that has special stock exchange where the moment anyone who goes there they know that profit is not the key motive there are a lot of people who might be interested in investing towards socially relevant purposes but they don't have huge amounts of money to invest the whole idea of stock market is uh small amounts of money can be invested there right so uh from multiple sources huge sources so such companies to raise money from people who are not only working on profit motive who want to invest in socially small amounts but in socially relevant activities for them a separate social uh stock exchange called a social stock exchange has to be used but there are restrictions on the companies which are raising money from here because they cannot raise money from here and use it for whatever purpose that they want okay they have to show to the concerned organization that they are using the money in the right way as well there are certain guidelines that are associated with the task but this is the general idea of what is the social stock exchange both the statements are correct okay there's three more questions hit tight almost there time starts technical textiles i'll answer that uh before i explain this one so what are technical textiles let me look at the answers um p okay all right so a lot of people saying c some people saying d but most are most answers are c all right so there is a general logic by which you can eliminate one statement and that will help you arrive at the answer itself the one statement is the first statement technical textiles account for nearly 80 percentage of india's total textile and apparel market if you have a general idea of what is technical textile it just textile itself but used for uh your non uh conventional purposes or uh textiles of a particular type okay it does wide variety of use uses um so textiles made of uh let's say jute or certain types of uh you know you can't quite call it as uh plastic but similar kind of compounds that are there so that is what is the whole idea of technical textiles okay so it has application in manufacturing parachutes or sports appliances even defense appliances your bulletproof vests all these can be created out of technical textiles okay tens can be created out of technical textiles so that is the whole idea 80 percentage of india's textile market is technical textile you should have been hearing about texting technical textile for a very long period of time it is an evolving area evolving area cannot already have 80 percentage that's a logic that you can apply you eliminate one you're left with only one answer c is the correct answer first statement is wrong it is not 80 percentage it currently accounts for a much much smaller proportion of it if um um i forget the exact number that is there so i'll let you know meanwhile the second and the third statements are uh correct so there is they are very generic in nature um also i before i forget there are a couple of queries which came about the previous question i'll come back i am here to tell you what how much does it account for barat is asking does ssc come under the purview of fcr a uh unfortunately i don't know yet i with respect to fcr a i don't know first of all whether regulations have been put in place with respect to foreign contributions or not is there any particular reason why you ask this question is there a context to it please let me know when arvind is asking will it be effective as it has no returns no we can't say it has no returns even a company which doesn't work with profit as motive may make certain profits and sometimes philanthropic measures for example let's say you are an extremely rich person you can go and run some charitable organization like akshia patra or such non-profit organization what if you don't have that much money but out of your salary you believe that you want to contribute something towards charitable organizations so instead of randomly giving in and the problem with respect to giving money to charitable organizations sometimes is you don't know whether they're actually using it for charity this is where the government provides an opportunity saying if you want to be sure and the government is saying that we are regulating it properly we'll ensure that the money is used for charitable purposes or socially relevant purposes not just charity socially relevant purposes so rather than giving it to some random organization why don't you come and put the money over here small amounts of money that is where it is expected to raise money from those people who are putting their money with profit as the as not the motive over there so it can raise money in that sense okay so that is the answer to it but at please let me know as there is if there is a context to it to your question so I told you that with respect to technical textiles I'll let you know what is the contribution it contributes roughly around 10 percentage of India's total textile and apparel market okay so that is the number not 80 percentage the exact number is 13 percentage but roughly 10 percentage we can remember it that way that could be sufficient so that is the error with the first statement okay so there is this website called as invest India which all of you might be familiar with or some of you might be familiar with I do sometimes use it in class if it's relevant so this is the website invest India so this website has information on technical textiles because of the focus that is given there so this is the website this gives you a lot of information about FBA and all investments into Indian all those things invest India dot gov dot in but more specifically you can search just technical textiles and the best source of information that you have is from this website the future of textiles technical textiles important because the prime minister himself made a lot of comments about this and a lot of key government comments have been about focusing on technical textiles so it has an overview where are the various segments where it is used from a science and tech perspective itself these are the main segments and applications where it can be used so becomes very important just read up generally about this the numbers rate of growth and all those may not be as important more from a science and tech perspective than from an economic perspective okay all right so moving on to 29th question just two more time has started okay done so let me look at the answers so B is the dominant answer B is two only okay let's take a look at it scheme for promotion of bulk drug parks under which the ministry of Ayush claims aims to support the setting up of first of all if you are familiar with what is bulk drug the generic drugs that are manufactured what does that have to do with the ministry of Ayush ministry of Ayush is about your indigenous medical systems right so it is the department of pharmaceuticals ministry of pharmaceuticals which is involved in this not the ministry of Ayush that is where the first statement is wrong everything else about it is correct 3000 crore is set up three drug parks were proposed to be set up as per the budget recently the approval has been given to three states for setting up drug parks over there 3000 crore is the outlay 1000 crore per drug park bulk drug park scheme intends to reduce India's high dependence on imports for manufacturing bulk drugs so during COVID there was this problem India is a big huge pharmaceutical so we can pharmacy of the world we are defined as but we are dependent on Chinese imports for active pharmaceutical ingredients API we do produce a lot but we are also dependent on imports from there to reduce the import dependence and to make India truly atman urban in the context of pharmaceuticals is why this particular scheme was launched so the second statement is correct the first statement is wrong because it is not the ministry of Ayush pharmaceuticals ministry or the department of pharmaceuticals is the one which is involved in this D2 only is the correct answer okay so meanwhile to answer a previous question Bharat no Bharat's question was whether firms in social stock exchange have to be registered under FCRA it's a good question to know because I can give you some extra information SSC does not allow foreign investments as of now so you foreigners are not foreign portfolio investments or that side of investment is not allowed in social stock exchange so the question of FCRA doesn't even come into the picture I hope that answers your question moving to the last question that we have time starts welcome Bharat okay we are out of time so 29th I told you the answer is two only earlier someone asked me about 29th answer two only okay 30th 30th again a very general kind of informative kind of statement the answer is D12 and 3 the answer for 30 is D12 and 3 let's look at the statements one by one ONDC is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks it will enable local commerce across segments such as mobility grocery food delivery and travel to be discovered and engaged by any network enabled application network enabled application being the important one it is an initiative of DEPIIT it is not actually actively run by them but it is an initiative of that department there's no doubt about it first of all what is open network for digital commerce ONDC the idea is that um we have let's say something like again I'm taking the similar kind of examples Amazon or Flipkart okay let's say I have an account in Amazon and there are some sellers who are registered on Amazon when I want to buy a particular product I want to buy a mobile phone I can buy only from those sellers who are registered on Amazon so it's only my options are limited to that there may be so many other sellers of the same mobile phone or some other object that I'm buying by who are not registered on Amazon who are registered on some other okay let's say Flipkart let's say some other local other e-commerce platform if there is any that that is there or there is no e-commerce platform if there is some other seller who's not registered on any e-commerce platform my options are restricted to those entities who are registered on the Amazon network alone similarly for a seller also they have to be registered with Amazon to sell on Amazon they have to be registered separately with Flipkart to sell on Flipkart or they have to be separately registered with some other entity to sell there so they need individual registrations everywhere otherwise there there might be some customer who says most of my products I'm buying from Flipkart I won't I don't even have an account in Amazon which means a producer who's registered or a seller who's registered on Amazon is missing out on a customer who's not registered on Amazon so this is a problem narrows down the buyers and sellers the contact between buyers and sellers so the government came up with an initiative where they said we are going to create something called as an open network for digital commerce where whoever is the interested seller can come and register there okay whoever is see even someone like something like an Amazon or Flipkart can go and register themselves with O and D C and a seller who's interested can go and look register themselves there which means that now if you access it through the open network for digital commerce any seller who's registered or any network enabled application network here is open network right network enabled application anyone can access any any seller can access any buyer any buyer can access any seller it need not be app specific okay which is why it is called as open network so that is the whole idea of it to you can say democratize the whole e-commerce segment is the whole idea behind the concept of open network for digital commerce okay there's a very interesting five minute video a seven minute video about explaining the concept of O and D C which you can download from their official website itself so O and D C just type O and D C it will give you a very good overview of their official website open network for digital commerce there is a video which is given where is the video no more and must be somewhere here maybe about or maybe you click on home there is a seven minute video I randomly popped up I think somewhere you click you will get the video I'm not able to it's not still very user friendly about I think learn about O and D C opens up that video I think I'm not sure but there is a video here I'm sure about that so this is a source from where you can access it okay so that brings us to an end of the 30 questions that I have yeah so to democratize only correct I think thank you for that that brings us to an end of the questions that I haven't had in mind so if there is something else that you would like to ask you can you're free to ask ask a thing meanwhile there is a question earlier asked about UPI 123 I'm looking for who to us who asked just to address the person okay Tamil asked me can I explain UPI 123 pay so the idea is for us to use UPI now we need a smartphone with internet connection all those right how about UPI for people who do not have an internet mobile phone who have a feature phone like our previous double and double zero kind of phones so UPI 123 pays an option by which they have a few alternatives they can type an IVR code or they can call and make transactions by giving a certain code that facility is called as in general terms that is what is called as UPI 123 pay for feature phone users how to use UPI okay so hope that answers your question Tamil how to cover economic surveys by see I think at this point you shouldn't focus on economic survey too much just focus on certain areas certain tables look at previous year UPC questions what are the trends like I took up today right trends data table patterns that is what you should focus on for means economic survey becomes even more important okay from a means perspective it you can take some information with respect to schemes and all those things from there and that is what you can that is how you can use that okay economic survey from problems perspective just now if you go and start reading everything it is a little two time consuming in nature I don't know how to share any communication mechanism can you write to Shankar Academy and ask for my information I'll my mail ID will be shared by them you can find Shankar Academy's communication because this video I think is shared on YouTube as well so I don't want to give any communication mechanism with such an open platform just write to if you have my mail ID you can write to me I'll respond to that if you have been a past student or just write to Shankar Academy they will find some communication there I will make sure that I'll ask them to reply individually to you on mail giving my email ID then we'll communicate okay I hope you understand my hesitation to share on an open platform any communication mechanism so anyway so Satish Kumar can I explain zero coupon bonds can we say T-Bills and CMV as zero coupon bonds yes we can call it as zero coupon bonds zero coupon bonds means bonds which have zero interest rate because your T-Bills and cash management bills do not work on the concept of interest rate they work on the concept of issued a discount and redeemed at par so how T-Bills works is government issues at T-Bills and says 91 days later I'll give you 1000 rupees they tell you how much they'll give you so what is the gain that you have government says okay I want minimum 900 rupees I'll give you 1000 rupees after three months minimum I want 900 rupees now auction starts to buy the T-Bills someone says I'll give you 910 someone says I'll give you 920 someone says I'll give you 930 finally they settle for 950 so the government gets 950 they'll give you 1000 so there is no interest rate the gap between 1000 and 950 is what is your gain so that is what is called as zero coupon bonds okay bond yield and inversely proportional to bond price please explain whether bond here denotes both G6 and T-Bills bond here denotes primarily G6 because T-Bills are short term but everything is a bond so data G6 is what is usually referred to in this case Mithilesh Ayur student of Shankar Academy do you have any contact information of mine if so drop a text so that I can explain in fact I think I have explained the link between bond yield and in one of the videos that's there on YouTube as well okay just okay a couple of questions have come I think maybe I'll answer it now it's a bond yield and bond price I'll explain the relationship welcome Priya Darshani Dave SAS welcome is there any zero coupon bond other than T-Bills and CMB here I think commercial papers and are also zero coupon bonds if I'm not wrong so those are government securities but private securities can be zero coupon bonds also yeah Mithilesh actually stay back because I think other people a couple of others are also asking so I think I'll explain bond yield and bond the relationship between bond yield and bond price now itself welcome Aravind Meena Priya what is crowding effect so there is nothing called as crowding effect it is either crowding in effect or crowding out effect if you're asking in the context of government expenditure so the idea is simple if the government were to increase their expenditure government increases their expenditure generally capital expenditure government increases their capital expenditure if it results in more and more investments coming in private investments coming in it is called as crowding in effect because government is building roads and infrastructure other investments are coming okay if the government were to increase their expenditure as a result of that increase the private investors are either looking at the government as competition or the private investors see government to spend money they have to borrow it when they borrow the interest rate tends to go up because government is borrowing others are also borrowing demand for money is increasing so government borrowing means private investors will now find borrowing costlier as a result they may not borrow so if the government increases expenditure as a result private investors go away that is called as crowding out effect so there is crowding in and crowding out effect crowding in means government investment is resulting in more investment crowding out means government investment is resulting in investment reducing private investments reducing so hope that clarifies it okay so crowding effect I have answered so what bond price and bond yield the idea is this this is primarily in the secondary market okay not in the primary market Satish I will answer that but let me finish this one so this is in the secondary market okay so there is imagine that there is a bond government issues a bond and borrows 1000 rupees government says they will pay 8% in return first year five year bond okay 8% is the return so 80 rupees is what the person will get at the end of year every year the person will get 18 rupees second year let us say there is inflation when there is inflation interest rates in the economy also go up okay so now in the second year when the government is trying to borrow money it is issuing a new bond it has to offer a higher interest rate because of inflation the interest rates have gone up so it has to offer higher interest rate so the government is offering 10 percentage as the interest rate on it instead of 8 percentage the government in the second year borrows 1000 rupees but is offering 10 percentage as the interest okay so there are two government bonds now first bond and second bond first bond has 8% in return second bond has 10% in return first bond offers 80 rupees on 1000 rupees second bond offers 100 rupees on 1000 rupees okay now the person who was the first bond in the second year when the person is trying to sell it no one is buying the bond why is no one buying the bond because there is already a bond which is offering much greater than the first bond so why would anyone buy the first bond so what will the first person do the first person will be forced to sell the bond at a lesser price because the person cannot alter the interest rate the person what they can do is they can sell their bond at a lesser price let us say they sell it at 20 rupees lesser than usual so they bought the bond at 9000 rupees they are now willing to sell it at 980 rupees which is a loss for them why are they doing it because they need immediate cash otherwise no one would do it they need immediate cash so they are willing to sell it at even 980 rupees when it is sold at 980 rupees is the 1000 rupee bond will still fetch 80 rupees so 980 rupees will fetch 1080 rupees so 980 rupees will fetch 100 rupees on top of it whereas there is another bond which which is 100 rupees on 1000 rupees this first bond is now fetching 100 rupees on 980 rupees okay so the bond price has gone down the yield of the bond which was previously 8 percentage is now more than 8 percentage 100 rupees on 980 is more than 8 percentage when the bond price goes down the rate of yield or the yield goes up so this is the inverse relationship between bond price and bond yield okay it is better explained if I could write it but then that will take a lot of time it will it is a bigger explanation if you can now communicate with me just find my email id or write to Shankar academy so I will get the information or you will be shared my mail id then I can share the written explanation of this I have a written explanation with me I can do that for you all right so if you want a further explanation of bond price and bond yield if not go to RBA's website so I will show you to understand the relation between bond price and bond yield itself I will show you a very good source just type G6 RBI FAQ okay so there is an FAQ on government securities that RBA has here you will find a discussion on yield where are you yield or is it not this one I think this is the one yeah here it is how is yield yield based option question number four price based auction wasn't there another one wait no maybe not this one so this yeah what are the basic mathematical concepts one should know for calculation involving bond prices and years it is very complicated probably so you can take a look at it but if you find it difficult to understand okay what is the relationship between yield and price of a bond how is yield of a bond calculated so an illustration is provided okay so this should help you if you are not able to communicate with me else communicate with me find a way hankara academy through that come to me I will help you out all right welcome with leish rajasri is asking how does the record rate affect bond yield and rate when the report when there is inflation report it increases when the report it increases logically bond yield also has to increase if the government is trying to borrow money if the report it is high they'll have to offer higher rates as well so bond yield tends to go up as well at least in the primary segment bond yield tends to rise along with repo is what is the general understanding but you'll have to be very specific in which direction we are talking inflation adjust bonds this scenario will be insignificant right inflation adjusted bonds yes to a large extent insignificant but inflation adjusted bonds forms a very small part of overall government borrowing so it is not significant enough for us to say that that is a big factor okay ninth question option a is it for all state own taxes revenue is a major no for not for every individual state not for every individual state so we have I had downloaded that page right so not for so take a look at this not for every single state that is there but for all states put together all the states put together the money that they receive here it is so this is for all states and ut's with their own legislation not for every single state that is hope that answers the question cumulatively for all states is what we're talking about I hope there is no unanswered question so I think we'll wind up the session with this hope you had a informative session 16th question due to internationalization of rupee will rupee appreciate and exports decrease so exchange rate will be affected see for rupee to appreciate exports decrease uh shrinath data are you a student of sia do you happen to have my mail id banglore pc much you have my mail id then right just contact the banglore office and they'll give you my email id or my telegram id tell them that you I told you to share the telegram id not the number please don't ask for number telegram id or just my mail id you ask them for my mail id I'll we can interact okay so 16th question due to internationalization will rupee appreciate and exports decrease so exchange rate will be affected did I say that exchange rate will be unaffected why do you ask this question 16th question it is a process that involves okay it is a process uh it increases the exchange rate risk uh is the part that I think you might have a question with um due to internationalization of rupee will rupee appreciate I know why would rupee appreciate because greater demand for rupee okay but appreciate with respect to which currency appreciation is a concept with respect to two currencies right with which currency are you talking you are still talking about the internationalization of rupee and talking about transacting in dollars your transaction itself is in rupee right so where is this concept coming which appreciation with respect to what currency that is a question that is raised now right so rupee in the global scenario gets appreciated no doubt about also um exports may reduce exchange rate may be affected exchange rate will stabilize it may have some benefits there may be some disadvantages for example developed countries they find it hard to export USA as a trade deficit with a lot of countries all that is true so in the long run maybe it is possible that it can have some impact to say that it increases the exchange rate risk on domestic traders is highly uh no it's very drastic to claim that okay so hope uh that gives you some clarity on that all right so I think we have gone way overboard we started a little late but still considering that also we have gone at least half an hour so we'll wind up the session with this thank you so much


Ladies and gentlemen, my task is to welcome you to the second day of our ESRB annual conference. I'm Francesco Mazzaffero, I am the head of the ESRB secretariat. Let me offer you a personal contribution on some of the themes which we discussed yesterday. ESRB exists since six years, and yesterday several speakers spoke of infancy, adolescence, the formative time of macroprudential policy. So, all of us know that in the life of people, in the life of all of us, exactly that period is very important, is crucial. And sometimes it determines how we will live for the rest of our life. So, to start well is indeed crucial. And so, I would like to pass to you two messages on what we have been able to achieve in this two, in this six years, in this initial part of our life. The first one is that while we are a soft power institution, we can only issue warnings and recommendations, and we can only try to make the arguments for good policies. However, provided one does not exceed its powers, it does not pretend to exceed its powers, we can show that also soft law can function. I would like to give two examples of this. The first one is that today in all but one country of the European Union, national macroprudential authorities exist, this was the missing link between the ESRB and the implementation of macroprudential policy. It has been identified at the very early stage by the ESRB, we have been issuing a recommendation for that, where recommendations do not have any binding powers, they are not directives, and nevertheless, we have been managing to create a move, a cultural move, which has been legitimating the creation of national macroprudential authorities everywhere. The second point I would like to mention is that the first recommendation on economic policies of the ESRB was on foreign currency lending. At that time, there was a problem of flows which were continuing to aggravate a stock problem, particularly of borrowing from households in Swiss France. We have been issuing this recommendation, this recommendation has led to an interruption of the flow and when the famous Swiss episode took place, when authorities in Bern decided to appreciate their currency, well, at least this has been hitting the economists at the time in which the problem had become less serious, to the point that it has remained a serious consumer protection problem, it has of course having an impact for many people, but it has not led the economies in a situation of a very serious uncertainty. The second point I would like to make is that the ESRB has proven the importance to have a location for dialogue, and I would like to make three points on this. It has been a location for dialogue between micro and macro, and what I've learned in these six years is what really counts is that in all institutions, there must have been people who are caring for financial stability in their own remit. It is very important to make sure that all institutions, whether central bank, national supervisory authorities, national or European, there must be a group of persons who have as its own core function the fact of thinking about financial stability. And the factor of having all the institutions at the table at the ESRB has been facilitating this. The second element of dialogue is between policy and academy. Yesterday we have been listening to President Draghi speaking about the issue of over banking. Today we will discuss the issue of safe assets. I could mention the question of the treatment of sovereign exposures. All these issues have been brought to the table by the advisory scientific committee, which by the way at the table has three votes exactly like France, Germany and Italy. And this which is a completely unique characteristic and feature of the ESRB has led to the fact that new ideas have been continuously brought to a policy table. And the third and last element of dialogue I would like to refer to is between national and European authorities. Macropudential policy in Europe was created with a lot of fear that it would be misused for competitive reasons. Now we can say that Macropudential policy exists. There are more than 100 measures which have been taken. One could of course discuss the merit of the one or the other. But I would say that everybody would recognize that Macropudential policy has not been used in order to implement actions of one country against the other. So these are the considerations I thought were necessary or useful to start this second day. We are now perfectly punctual to give the floor to Stefan Ingves. He does not need a presentation. But I would like to tell you that without him none of the achievements which I've been speaking about would have been possible. Thank you very much. And Stefan, the floor is yours. Good morning, everybody. And thank you for giving me the opportunity this early hour to speak about the work of the ESRB. It takes all sorts to make a world. That's a common expression when confronted with something odd. But at the same time, recognizing that diversity is essential. I think it also takes all sorts or at least plenty of different sorts to make a functional Macropudential body, especially one at an international level, like our host today, the European Systemic Risk Board, the ESRB. The ESRB's Macropudential mandate is mirrored by its broad composition, bringing together central bankers and financial supervisors, national and EU-wide perspectives, sectoral experts, and academics. Now, certainly, we may look at various issues sometimes quite differently. We may indeed find each other's perspectives quite odd at times. But this is also the point. With the right setup, differences in perspectives and expertise enrich our assessments and become a strength. And the ESRB uses that strength to handle its rather daunting task of overseeing the EU financial system as a whole. So this morning, let me elaborate a little on what the ESRB has achieved so far and why I think the EU needs a strong ESRB with a broad membership when we move forward. Now, maybe not so well-known, but it is quite an impressive journey that the ESRB has undertaken since its launch in 2011. I'm proud to have been along for the ride, not the least in my role as the Chair of the Advisory Technical Committee. Now, the beginning of the road, in terms of a blueprint of the ESRB, reached the public eye back in 2009. A high-level group chaired by Jacques de la Rosier recommended, among other things, that a union-level body be established with a mandate to oversee risk in the financial system. And the aim was to address one of the fatal flaws revealed by the financial crisis, the lack of a truly macro-prudential approach for safeguarding the stability of the diverse and interconnected EU financial system. Before the crisis, the quality of supervision varied substantially between countries, and its coordination within Europe was anything but sufficient. The concept of macro-prudential oversight and policy were largely unheard of, and it is probably fair to say that most supervisors, or anyone else for that matter, could not see the words for all the trees, let alone knowing how they were connected to the vegetation in other countries. Part of the remedy would be an EU body that in a holistic way brings together a representation and expertise as broad as its system and encompassing mandate. The ESRB was created more or less on the basis of this blueprint. Today, almost seven years after the so-called de la dossier report, we have reached a stage where the European Commission is assessing the current macro-prudential framework in the Union, including the role of the ESRB. There are a number of areas where the Commission wants to shed some light before drawing final conclusions about possible improvements. One such area is what would be the best composition of the ESRB's decision-making body, the General Board, and also most of its sub-structures. In this context, suggestions to reduce the size of the General Board have been mentioned, but this would in my view be not only, it would not only reduce the number of people around the meeting table, but it would also take away one of the ESRB's present main strengths. Now, as somebody who has seen the ESRB at work from the inside, pretty much since it saw the light of day, I wanted to take this opportunity to talk about the experiences so far and how we can use them as we move ahead. The ESRB is unique in that it brings together representatives from central banks and financial supervisory authorities from all 28 member states, representatives from the three European supervisory authorities, the ECB, the European Commission, and the Economic and Financial Committee, as well as the independent boys, which was mentioned already this morning, of the ESRB Advisory Scientific Committee, the ASC. Now, as some of you in this room have experienced, in person, the General Board usually has over 70 members seated around the table. Most of them central bank governors or heads of national supervisory authorities. Such a crowd around the meeting table could have been a practical nightmare and an impediment to efficient decision-making, but so far it actually works. We have had candid and open discussions in this composition, and we have been fully capable of taking decisions when we have needed to do so. Well, as I touched on earlier, we may not always unanimously agree on everything, not even after many iterations between the parties involved and at different levels within the institution. Such processes may indeed require a bit of patience, especially when a process is being established. But in the end, the arguments from all sides have been heard, and when we need to take this, to make decisions in the General Board, ultimately at the end of the day, we simply vote. Legally, the ESRB is an independent EU body tasked with macro-prudential oversight of the EU financial system and the prevention and mitigation of systemic risk. It is chaired by the President of the ECB. The ESRB has no binding power, but has soft tools and to fulfill its mandate, the ESRB identifies, monitors and assesses potential systemic risks, and when we find inappropriate issues, so-called warnings or recommendations, to mitigate such risks according to the principle comply or explain. Now, this principle simply says that either you do as recommended or you explain what you have chosen not to. Recommendations can be addressed to the EU as a whole, to one or more individual member states, to European supervisory authorities, national supervisory authorities, and to the Commission. And as I said, the General Board makes decisions by voting, and several of the votes that have taken place these almost six years have concerned issuing ESRB recommendations. The very first ESRB recommendation targeted risks generated by lending to EU households in foreign currency, proposing measures to mitigate those risks. Now, it's always hard to assess something against a counterfactual, but I do think it's fair to say that the recommendation in question is likely to have been both timely and important. Mitigating policy actions undertaken by national authorities reduced the risks at hand, and if this had not happened, events such as the sharp appreciation of the Swiss franc in 2015 could have generated severe problems for many EU households. This would in turn have affected other financial and economic developments negatively with the potential to spread beyond the countries directly affected. Now, other recommendations have much in line with the ESRB's macro-pudential mandate, targeted a wide range of issues in different areas such as money market funds, funding of credit institutions, national macro-pudential mandates, intermediate objectives, and instruments of macro-pudential policy, and the assessment of cross-border effects of and voluntary reciprocity for macro-pudential policy measures. Now, naturally, these policy actions have been underpinned by assessments conducted by specialists with expertise in very different fields, and this in cooperation with the broad membership. I think that the ESRB has a good work progress process in the sense that it combines two features. First, all members are free to send their participants to an ESRB work stream. This is an inclusive working method where different perspectives meet, where there is a buy-in for the members and where peer pressure is exerted. Second, there is a procedural aspect which I mentioned earlier, and that is the decision-making body eventually votes on what road to take. Notably, the ESRB has been able to push, to publish a quite extensive amount of work that has contributed actively to the general debate. This is, in my view, very important for implementing a macro-pudential culture in a broad sense, reaching outside the circle of the ESRB membership. Simply by shedding light on some of the macro-pudential issues we are dealing with and explaining why we see a need to tackle them may contribute to managing expectations, making the job of safeguarding financial stability just a little bit easier. The ESRB's contributions also cover very complex and in some respect sensitive issues where the parties involved may have started from views that are very far apart from one another. Being capable of getting results even when dealing with difficult tasks like that is an important quality of a body like the ESRB. And here let me particularly mention the ASC, the Advisory Scientific Committee, with its composition of distinguished academics with different expertise. And in a sense, a more independent view on things. The ASC has been a catalyst in some of the work I just mentioned. And some of the topics on which the ESRB has produced and published valuable contributions include, for instance, the regulatory treatment of sovereign exposures, macro-pudential assessments of various issues related to shadow banks, an area where there is still a lot of new ground to cover, the insurance sector, and commercial and residential real estate markets in the EU, just to name just a few. Now, I'm also thinking about the work on structural issues regarding the banking sector. For instance, in a report called, Is Europe Overbanked, done by the ASC? This is a very relevant question in my view and one that will most likely get back, that we will get back to in the first panel later today, where the ECB vice president will lead the panel a discussion addressing the effects of the low interest rate environment. The latter is another topic which benefits from being assessed from a macro-pudential view and which is naturally also on the ESRB agenda. I would like to mention another core task of the ESRB, namely identifying potential risks to the EU financial system at an early stage and, as I mentioned, issuing warnings or recommendations about policy actions to mitigate such risks when deemed appropriate. Much of the work just mentioned was naturally initiated through the ESRB's regular discussions on risks and vulnerabilities in the financial system. Here, the ESRB benefits immensely from its broad composition of members, as these tasks must be underpinned by a truly holistic assessment of national, sectoral, and overarching aspects, including how all the individual components interact. The ESRB's support on the analytical and statistical side is, of course, particularly important here, but also the inputs from national authorities and other bodies are essential. Now, we have come a long way in terms of issues such as access to and comparability of data. This, for instance, as regards national banking systems, which is a benefit not only within the ESRB membership and products like the ESRB risk dashboard makes a broad set of risk indicators easily accessible for the members as well as for the general public. In addition, the risk discussions often generate further assessments that are eventually communicated in one form or another, such as the reports and recommendations I just mentioned. Now, a main strength of the ESRB's risks assessments is, in my view, that it captures both the top-down perspective as well as national assessments where the members make self-assessments of the risks at hand and what issues they expect to tackle down the road. These assessments are discussed together with all the other inputs to the risk discussions. Now, moving forward, one area where I hope the ESRB will make further progress is in developing the process for making country assessments. That would enhance the abilities of the members to exert peer pressure, which in turn may help reduce what often goes under the heading of inaction bias. When it comes to identifying, analyzing and monitoring financial stability risks at the EU level, many pieces of information are necessary. The process is for handling all the diverse inputs as well as our assessment tools have developed more or less out of necessity. To really get the big picture, we must understand how the individual pieces connect to each other and we must be able to put them all together. All in all, I think that the ESRB nowadays makes good use of the broad scope of inputs from members with different expertise, connecting all the dots and their inherent dynamics from a truly system-wide perspective. Now, of course, the ESRB was not the only response to the structural flaws in the supervisory framework which were exposed by the financial crisis. A whole new financial supervisory and regulatory landscape has by now at least roughly found its shape from in the EU. But there are still some pieces of the puzzle that have not yet fallen in place. And I should also say that I do not think that the landscape will ever be completely frozen. That will be a bad idea. These frameworks need to evolve and adjust as we move ahead, as we learn from our experiences and as the financial system which the target is constantly evolving. But I would still say that the rough contours we now have on the map are fairly stable and will stay in place for quite some time. And I think that that is very positive. Important landmarks in this landscape include, of course, the macro-prudential oversight by the ESRB, the banking union which focuses on the euro area, the banking union in turn has three pillars, the single supervisory mechanism, which is a big leap forward on the micro-supervisory side, the single resolution mechanism, and the European deposit insurance scheme which, when it is implemented, is meant to weaken the link between banks and their national sovereigns and deliver greater trust in the safety of retail bank deposits. Now, as Francesco mentioned earlier, in addition, national frameworks for macro-prudential oversight and policy have been put in place all across the union. The ESRB has played an important role in that work, not the least through its recommendations regarding national macro-prudential mandates and intermediate objectives and instruments for macro-prudential policy. The latter breaks down the overall objective of macro-prudential policy into a number of intermediate objectives, making it more clear what types of risks it's aiming at mitigating. These recommendations also provides an indicative list of instruments that member states may assign to relevant authorities in order to pursue the objectives of macro-prudential policy. The formal recommendations have most certainly been vital in providing a benchmark for the EU member states when setting up the national macro-prudential frameworks. But I also think that the day-to-day work in producing these formal recommendations may have been almost as important. This interaction is, of course, always a key component, but especially in this case, I think the positive side effects may have been particularly large. Macro-prudential policy was still very much in its infancy at the time, and there was a need to find some common language or common ground, if one will. And I think that the work and many discussions at various levels of the ESRB that took place were a catalyst in developing what one could perhaps call a macro-prudential culture within the EU. Now, another landmark in terms of operationalizing macro-prudential policy was passed in 2014 when the Capital Requirements Regulation and Directive, CRR, CRD-4, entered into force to provide these authorities in all EU countries with a set of policy instruments to mitigate financial stability risks in the banking sector more efficiently than earlier and previous toolboxes had allowed for. The ESRB also took an important role here in terms of supporting the member states as they were to operationalize macro-prudential policy. In particular, the ESRB produced two reports to this aim, the so-called flagship report, providing an overview of the macro-prudential policy framework in the EU banking sector, and in addition, a more detailed handbook which provides assistance for macro-prudential authorities on how to use the CRR, CRD instruments for the banking sector. The ESRB also has a formal role in CRR, CRD, among other things through opining on some national macro-prudential measures. But the ESRB's macro-prudential mandate extends beyond the banking sector. And not every spot on the map over the financial system is as well-known and covered from a macro-prudential viewpoint as the EU banks in the remit of the CRR, CRD. Here, the financial landscape is constantly evolving and subsequently the potential sources and subsequently also the potential sources of systemic risks. One aspect reflecting this is that the share of credit provided by other financial institutions than banks has grown over the past few years. Hence, after making the macro-prudential framework for the EU banking sector operational, targeting the parts of the map where we find the non-bank financial institutions and working on how to provide a holistic view regarding all parts of the financial system is a natural and an important next step for our work. The ESRB just recently published a strategy paper on macro-prudential policy beyond banking which complements the guidance already provided on the policy framework for the banking sector. That strategy paper is meant to provide a point of reference as we now move on to further enhance the macro-prudential policy strategy, regulatory data and instruments for addressing risks in non-bank financial sectors. Let me also mention that other work related to non-bank financial institutions has also been conducted where the recently published annual ESRB shadow banking monitor will hopefully provide over time important insights. The monitor provides an overview of developments in the shadow banking sector. It is intended to faster progress of the debate on related issues and hence targets a broad readership. Now here, the overall mission is to eliminate ideally potential blind spots on the macro-prudential map and to connect all the dots. To achieve that, we need both an analytical framework underpinned by sufficiently high quality data and a policy framework which enables us to target risks in different parts of the financial system in a consistent manner. The resilience of a specific part of the financial system needs to be linked to its potential impact in terms of the systemic risk it could generate for the financial system as a whole. We may also need to develop a wider financial stability toolkit and this would for instance include top-down stress tests for asset managers and central counterparties and recovery and resolution frameworks for the insurance sector and central counterparties. The ESRB is very well placed to play one of the leading roles here due to its mandate, the broad expertise of its membership and its inclusive working methods with a wide range of the relevant stakeholders interacting among each other. I've been talking about the CRR-CRD on and off for a few minutes but let me just elaborate a little bit more from another angle. The CRR-CRD started out after a global framework had been agreed in Basel and this EU level framework was in turn implemented at the national level in the member states. Now in my day-to-day work, I deal with financial stability issues on different levels if one will. As chair of the Basel Committee for Banking Supervision, the scope is global. While as governor of the Swedish Central Bank, I have a national perspective on financial stability but let me admit that the international agenda and developments there play a key role at the national level as well. Now being chair of the Advisory Technical Committee of the ESRB and the member of the ESRB's Decision Making Body, the General Board, this of course provides an EU level perspective on macro-prudential policy and systemic risks. Now these different levels or perspectives are in my view becoming increasingly intertwined, especially after the financial crisis and the lessons that we learned during that episode. Now much of the agenda is indeed set at the global level first and the way financial markets function today, this is also quite natural. We need at least minimum requirements at the global level but we also need to strike a balance between common rules of the game in terms of minimum requirements and the need for national flexibility, not the least in the EU, which to put it mildly, is far from a homogenous group of countries. In fact, the economic and financial conditions differ substantially between member countries. While these differences are quite likely to generate different risks, the structure of the national financial system may also in itself contribute to either mitigating or further fueling these risks. Now, it's not very long since the CRR, CRD entered into force but we have already enough practical experience to be thinking about developing it further. So in my view, that should include simplifying the framework. We really had very limited experience of conducting macro-prudential policy in practice at the time of the CRR was drafted. Now in principle, the commission's starting point was to transfer the Basel III minimum capital regulations into a maximum harmonization framework within Europe. And the somewhat cumbersome procedures when using some of these instruments under the CRR, CRD are probably the result of a pretty tough negotiation which took place before the current framework saw the light of day. But today, with some more experience and a fair amount of learning by doing, I think most would agree that national flexibility is necessary for efficient policy implementation. And as I mentioned earlier, the circumstances under which macro-prudential policy operates are not static. So in terms of the macro-prudential framework, it is unlikely that one size fits all and fits at all times. Rather, the appropriate macro-prudential policies set up naturally including the use of its instruments will to some extent need to be tailored. The national flexibility, which is already part of the current CRR, CRD framework is in my view key for efficient macro-prudential policies. And as we move forward, we may need to strengthen that flexibility. We do not have perfect foresight as regard what risks we will have to tackle further down the road. Nor do I think that we will ever develop the perfect tool for every conceivable financial stability risk out there. One thing to bear in mind in all of this is that whether the perspective is global, regional or national, it all boils down to the same thing, safeguarding the stability of the financial system. And in today's highly interconnected world, it is quite obvious that we to some extent are all in this together. And this brings me to a related issue where the ESRB has played a leading role. An important prerequisite for effective implementation of macro-prudential policy in a financially highly integrated world is that the measures in question can affect all financial sectors which influence the specific risk that authorities are trying to mitigate. This is not always the case. For example, foreign branches are regulated by authorities in the home country of the parent company and may not be affected by the measures taken in the country where they are active. Reciprocation may in such a situation help to mitigate the risks, minimize potential regulatory arbitrage and also provide a level playing field. In 2015, the ESRB issued a recommendation which provides guidance for a systematic assessment of the cross-border effects of macro-prudential policy and a coordinated policy response in terms of voluntary reciprocity for macro-prudential policy measures when needed. The recommendation provides the basis for implementing voluntary reciprocity in the EU and sets guidelines for the analysis, notifications and requests to be carried out. The reciprocity framework is still relatively new but it's a very important part of a macro-prudential approach for the reasons I just mentioned. I think that the ESRB's follow-up assessments of the recommendation in this area will provide important insights on how we might develop this further. Now then, what about the future role of the ESRB? Financial crisis brought with it new rules of the game for financial markets from a systemic risk perspective. We have a new regulatory landscape and framework for financial supervision and the ESRB is a pillar in that framework. Not only is the ESRB central in identifying and warning against risks to the EU financial system and recommending measures to mitigate those risks if needed. It has played a key role by providing a benchmark when the new macro-prudential policy frameworks were implemented across the EU. Here the ESRB continues to be vital in developing that framework further and with that I mean for both banks and for non-bank financial institutions. Now there is of course also the ESRB's role in the new regulatory framework connected to the CRDCR. In addition, I also think that the ESRB more or less by construction is well placed to help its members to tackle mainly national problems by using peer pressure and working against inaction bias in various ways. This may be very important, not the least when vulnerabilities emerge due to problems that are mainly beyond an individual authority's own control. One may wish that we would have come even a little bit further in this field at this point but it's important to realize that it takes some time to set up the necessary internal framework and processes. But by now the ESRB has that kind of machinery in place and the next step is actually to start using this machinery. Now, even if we have a much more complete supervisory framework in place today, both nationally and at the EU and Euro area levels, I think that the role for the ESRB as the EU's macro potential overseer is becoming more and more important. At a high level, there is in particular an increasing need to keep a truly systemic perspective, capturing all financial sectors, their interlinkages and dynamics. The EU banking sector is facing structural problems, non-bank financial institutions are becoming more important. CCP's have taken on a systemically important role and the low interest rate environment is among other things challenging the insurance industry and the EU financial sector does not seem to become less interconnected. All these issues must be tackled with the impact on the system as a whole in mind and I think that the ESRB is a key in this endeavor. For every challenge we face and overcome, we learn. We learn and that makes us better prepared for tackling even more difficult challenges down the road. And that is in my view, certainly true for the ESRB. We learn from the financial crisis and there has been a substantial amount of learning by doing since. I must say that the blueprint was good to begin with and now pretty much all the necessary nuts and bolts were already in place to create a macro-prudential body. Having central banks and supervisors around the same table as European institutions and adding the independent views of the advisory scientific committee to the mix is in my view a very good setup. I think that the plan for how all the nuts and bolts and other components should be connected and work together has proven to be a good one. While many probably doubted that the ESRB's somewhat complex setup with so many members could function well in practice, the institution has gone all the way from that original blueprint in 2009 to where it stands today as the EU's macro-prudential watchdog. Its machinery brings together all the components that its founding fathers had in mind with a setup that has allowed the broad composition and large membership to, in my view, become main strength rather than impediments when it comes to carrying out the work. So the road we have traveled these almost six years has formed an institution which has developed with the challenges it met. It has fine-tuned its processes and its machinery and I think it is well placed to face the challenges today and further down the road. Thank you for listening.