Opening a conference on banking control and supervision the Governor observes that banks have recognised and responded rather well to the increased risks they face in a changing world. Coaxed and encouraged by their supervisors they have adopted higher rates of provisioning and generally improved their capital ratios. New types of business that are constantly evolving, often of a highly complex nature, bring new risks and challenges. Some of this business, and the associated risks, are off the balance sheet but it nevertheless requires adequate capital to support it. The Governor concludes by noting that banks must continue to strengthen their resources-capital and manpower-and must seek to develop and adapt their control systems.