model risk, management, enhanced scrutiny of Boards and senior management, more emphasis on adoption of strong controls by SIFIs, horizontal review, stress testing, supervisory colleges, macroprudential surveillance and examination of risks associated with business models are being addressed. Resolution framework for SIFIs is another critical aspect that is under development.
A robust resolution framework needs to be put in place with a view not to burden the Government with the task of bailing out large and systemically important institutions, if they were to fail. A well defined resolution regime enables separation and continuation of core activities from noncore activities followed by an orderly resolution. In this context you must have heard of living wills.