Capital markets thrive on breadth and depth; and the broadest and deepest markets are those that transcend national boundaries. Companies raising funds seek liquid markets, which attract investors and lower the cost of borrowing. So it is that many Asian companies issue bonds in the Euromarkets, and technology companies worldwide aspire to be listed on NASDAQ. Investors in turn seek liquid markets, because in rapidly changing conditions, the ability to move in and out of markets at minimal cost is critical. BIS Review 50/2001  1  Fourthly, as a result of globalisation, small differences in conditions can translate into large differences in outcomes. Market participants have always placed a premium on sound and responsive regulatory systems. They seek jurisdictions that provide stable and resilient financial systems, and fair and efficient markets, at minimal regulatory cost and impediment to innovation. They prefer conducive business environments which offer good market infrastructure, favourable tax treatment, and stable economic and political conditions. And talent has always preferred attractive living conditions. They value good schools, safe homes, clean environments, vibrant social and cultural activities, and competitive remuneration. In the New Economy, both financial capital and talent have become more mobile. More open financial markets and more liberal regulatory regimes have enabled institutions to choose where to reside and operate. Countries have realised that people are the key success factor in the new economy. They have opened their doors wide to the immigration of talent, and created a single global market for those whose skills are in demand.

Lee Hsien Loong: Financial centres today and tomorrow: a Singapore perspective Address by Mr Lee Hsien Loong, Deputy Prime Minister of Singapore and Chairman of the Monetary Authority of Singapore, at the International Monetary Conference, Singapore, 4 June 2001. *  *  *  Mr Sandy Warner, President, IMC Ladies and Gentlemen:  Introduction I welcome all the delegates to this first IMC of the new century. Please allow me to share with you a Singapore perspective on financial centres as they are and as we expect them to be in the years ahead. In the last few decades the pattern of international financial activity has undergone major changes. Starting with a high concentration in a very small number of financial centres, activity then spilt over to more locations. But now with globalisation revolutionising the financial industry, and expanding the worldwide network of financial markets and activities, paradoxically the trend again seems to be towards concentration, with fewer mega financial centres, complemented by smaller centres with more specialised focuses. In Europe, London is the premier full-service centre, with others like Frankfurt and Zurich occupying strong niches - Frankfurt in the derivatives business and Zurich in private banking. In America, New York is pre-eminent with Chicago playing a specialised role in financial futures, and Boston in asset management. Both London and New York are not just continental but global financial centres, where the top financial institutions have congregated and capital markets run broad and deep.