2  BIS central bankers’ speeches  For 2015, the RENTAS daily average transactions totalled about 17,900 with a value of RM217.8 billion. This amounted to 4.4 million transactions valued at RM53.6 trillion throughout 2015. As part of the ongoing transformation of RENTAS, there is currently an exercise to transform RENTAS into a multi-currency system that adopts the SWIFT messaging standard. The adoption of SWIFT as an alternative access channel, which caters for multiple messaging standards including the ISO 20022, will facilitate the integration of RENTAS with other regional large value payment systems to facilitate seamless, safe and efficient cross-border financial transactions. The interconnectivity with other economies within the region will further enhance the integration of our trade and financial transactions. Development and modernization of the payment system in any country will not be possible without the banking system. Therefore, banks should lead the way in facilitating straight through processing (STP) to enhance operational efficiency by promoting standardisation and interoperability. This can be achieved through the adoption of common standards such as the ISO 20022, for corporate and cross-border payments. In this regard, banks should leverage on the momentum created by the ongoing transformation of RENTAS to reach out to their customers by offering holistic, end-to-end, STP solutions. This would contribute towards enhanced safety and efficiency and facilitate economic growth through greater connection with global supply chains, as well as, enhance greater integration with regional markets. Importance of keeping pace with innovation Let me now turn to the importance of keeping pace with innovation.

  The money markets are in much better shape as well: EURIBOR-OIS spreads have narrowed substantially, signalling a lowering of risk premia; the US money market funds seem to be re-opening access for euro area banks.   Tensions on sovereign debt markets have also eased: 10-year Italian bond rates have shed around 200bps since early December; Spanish rates have also decreased significantly in spite of recent renewed tensions.   Although at a low level, overall economic activity is stabilizing, as is bank lending. All these elements indicate a trend reversal. How has this come about? All of the players have proved their commitment and ability to restore stability. National authorities, especially in the most troubled countries, have taken far-reaching measures both to consolidate their public finances and to enhance long-term growth. The new Greek program has been launched. At the European level, a strong new fiscal compact has been agreed upon, as well as the rapid implementation of a powerful financial stability instrument. Banks are meeting their new capital requirements in an orderly way. And – I saved the best till last! – the Eurosystem has taken measures that have been absolutely decisive for this whole process to take place. Unquestionably, the steps already taken by the euro area to exit the crisis have been numerous and important. But recent market developments have reminded us that there is still a tremendous need for further demonstration of the determination of all the players in the European crisis to rise to the challenges facing us.