Unlike other countries who have moved to integrate supervisory responsibility for banks, investment banks, and insurance companies, the U.S. has preserved a model with multiple bank supervisory agencies and separate functional regulation of entities that are banks, securities firms, and insurance companies. And unlike those that have separated supervisory authority from the monetary policy and lender of last resort functions, the U.S. has kept them integrated within the central bank. Across the major economies, therefore, we face somewhat different cooperation challenges within our markets. We believe the U.S. model has worked quite well, and these differences in the design of the overall supervisory framework and its relationship to the central bank are likely to persist. But we share an important interest in working together across borders to help ensure that we have a framework for cooperation that matches the increased integration of national financial markets. This is important for the supervision of international banks as well as for other global financial institutions. It is important for the payment and settlement infrastructure. And it is important for how we operate together in crisis. The efforts of the Basel banking supervisors are particularly important in this context. While their efforts have long emphasized the value of international supervisory cooperation, the improved Basel II framework raises the bar even further, putting the need for supervisory coordination squarely on the table if Basel II is to be implemented effectively for a global bank.

Singapore aims to peak its carbon emissions around 2030 and achieve net zero as soon as viable after 2050. Climate change presents two significant risks to the financial system. Physical risk arises from the impact of climate-related natural catastrophes and widespread environmental degradation. Transition risk arises from the process of adjustment to an environmentally sustainable economy, including changes in public policies, disruptive technological developments, and shifts in consumer and investor preferences. At the same time, the financial sector plays a key role in the fight against climate change. Finance is key to unlocking a sustainable future. It can support the transition to a less carbon intensive economy and channel capital to green technologies and infrastructure. This is why MAS is incorporating climate change and environmental sustainability across all its functions. As central bank and financial regulator, MAS is working with financial institutions to strengthen the Singapore financial sector’s resilience against environmental risks. 1/9  BIS central bankers' speeches  As promoter of Singapore as an international financial centre, we are working with financial institutions to develop a vibrant green finance ecosystem to support Asia’s transition to a low-carbon future. As the guardian of Singapore’s official foreign reserves, MAS is integrating climate risks and opportunities into its investment framework. As an organisation, MAS is reducing its own carbon and environmental footprint to support Singapore’s broader climate ambitions and commitments. A FINANCIAL SECTOR RESILIENT AGAINST ENVIRONMENTAL RISKS Let me begin with strengthening financial sector resilience against environmental risks.