Moving forward, I would like to emphasize nine specific areas where supervisory rigor should be directed more emphatically. 16. Firstly, governance is of paramount importance and invariably at the root cause of supervisory concerns. Effective corporate governance and sound regulation go hand in hand, reinforcing each other. The recent bank failures in advanced economies have underscored the pressing need to address governance concerns head-on.
17. Secondly, supervisors must closely examine the business models adopted by banks and meticulously assess whether these models align with the institutions' risk appetite. This evaluation should delve into the level of business growth projections, sustainability of earnings potential, extent of diversification, provisioning cover, and appropriate pricing mechanisms, etc. 18. Thirdly, supervisors need to examine IT issues holistically.