A private-sector-led panel will be set up later this year to advise the Ministry of Finance and the Monetary Authority of Singapore on matters relating to corporate governance, disclosure requirements and accounting standards. Through feedback from market players and continual reviews, we will continue to refine our regulations to promote competition and innovation whilst maintaining high prudential standards and the stability of the financial system. The future of SEACEN The Asian financial crisis clearly demonstrated that the world has become more inter-linked. Liberalisation of markets in the region resulted in the fortune of each economy being more intertwined to one another than ever before. There is much scope for co-operation, and room for economies to learn from the experiences of one another. Over the past couple of years, there has also been a proliferation of regional and international foras, bringing together regulators and government officials to deliberate the intricacies of financial stability. In this regard, the challenge for SEACEN is to remain attuned to the needs of its various members, and to maintain its relevance by reaching out to its members. The SEACEN Centre has played an important role in facilitating the exchange of information and expertise on financial supervision and the conduct of monetary policy among the staff of SEACEN central banks. There is room for greater co-operation among regulators, as well as with other regional groupings and international financial institutions. SEACEN should explore ways to leverage off the expertise of these various groupings, and to create greater synergies through partnership and co-operation.

In particular, efforts have been taken to increase transparency, and develop and implement standards and codes to promote greater stability and enhance the robustness of financial systems to shocks. Efforts undertaken by international financial institutions include the IMF's Reports 1  The East Asian 9 economies are Indonesia, Malaysia, Thailand, the Philippines, Singapore, Korea, Chinese Taipei, Hong Kong and China. BIS Review 48/2001  1  on Standards and Codes (ROSCs), and the IMF/World Bank's Financial Sector Assessment Program (FSAP). Many developing countries, however, have expressed concerns over the tendency of these organisations to adopt a one-size-fits-all approach without taking into account the different circumstances and varying implementation capacity of the countries involved. In the banking industry, the Basle Capital Accord of 1988 was a landmark agreement which helped to increase the capital held by internationally active banks, and to create a more level playing field for banks under different jurisdictions. However, the rapid changes in banking and finance have led regulators to propose a New Basle Capital Accord which will establish a more risk sensitive and comprehensive capital framework, to benefit banks as well as improve safety and soundness of the financial system. The new Accord, however, poses challenges to Asian banks and regulators alike. The banks would have to develop more sophisticated risk management capability while the regulators would need to build up technical knowledge as well as supervisory resources to validate banks' risk management systems and determine if banks are sufficiently well capitalised on an on going basis.