This needs to be done while ensuring both resource allocation and effective implementation of programmes dealing with critical supply constraints in food and elsewhere. Significantly, both sets of challenges have to be met amidst an uncertain global environment, both generally and with respect to oil prices. I shall end with reference to the topic of today’s address.
In the interim, banks and supervisors will have to rely heavily on qualitative validation approaches although not entirely. Supervisors across countries are working together to address validation issues, and, I believe, will develop useful guidelines for banks and supervisors alike.