Of course, the world is much more complex and risks materialize over long periods of time in response to many factors, and there are important differences between social and private outcomes, but I think it is helpful to think through these types of signals ex ante. By making predictions and assessing whether observed outcomes are consistent with those predictions, we can better understand the complex dynamics in financial institutions and develop better policy. Resource Efficiency Finally, I’ll emphasize that I have focused on one specific type of policy efficiency that looks at the ability to achieve multiple objectives. Alternatively, one could think about efficiency more directly in terms of resources and burden, both on the private sector and the official sector. For example, the Federal Reserve aims to minimize compliance burden while achieving its policy goals.15 That perspective is about allocative efficiency of scarce resources and the deadweight loss associated with the misallocation of those resources. As part of the official sector, we have an obligation to be good stewards of resources and should always try to achieve a given set of policy objectives in the least-cost manner. Conclusions To conclude, I have suggested a simple framework to help distinguish changes in policy to achieve a different level of intermediation and an acceptable level of risk from changes in policy to increase efficiency. The first reflects the preferences of policymakers, and the second should be a standing goal.

But our financial education outreach can progress faster, and reach many more people, if we make the most of our collaborations with the unions, community centres and other organisations are here today. I encourage all of you to work with MoneySENSE to bring financial education to residents in your neighbourhoods, to your workplaces, and to your members. In this regard, I am happy to know that NTUC is planning to organise MoneySENSE programmes for its members. MoneySENSE encourages students to be ambassadors of financial education 11. It is also important to begin young. The Ministry of Education (MOE) has promoted financial literacy in schools so that students get a basic sense of money matters and of the need to save and spend wisely, from young. Financial education messages are taught through subjects such as Social Studies and Civics and Moral Education at the primary and secondary levels. Our teachers have also been given resources and training to enable them to deliver financial literacy lessons effectively. (One of the resources well-received by teachers is a CD-ROM entitled 'Promoting Financial Literacy in Schools' which comprises illustrations and case-studies to facilitate class discussions on financial literacy matters and issues. Workshops focusing on hands-on activities are also conducted annually to enhance teachers' competency in financial literacy.) 12. About 30 schools, through MoneySENSE, have enhanced their financial literacy programmes by conducting enrichment activities. These include interactive board games on prudent money management, workshops on financial matters such as debt, insurance and financial planning and inter-school financial literacy competitions.