Such an approach would allow capital to move more freely, efficiently and sustainably between jurisdictions. With robust standards consistently applied, wholesale financial services could be brought more fully into bilateral trade agreements, keeping the global financial system open and resilient, and supporting greater trade, investment and innovation. This high road leads to more jobs, higher sustainable growth, and better risk management across the G20. But there is another path – the low road – where trust and cooperation diminish, fragmentation hardens, capital flows are disrupted, and trade and innovation are curtailed. If authorities do not have sufficient confidence that their efforts to promote financial stability are being reciprocated elsewhere, then concerns about the risks of openness to domestic financial stability could intensify. If they do, domestic authorities will act to safeguard their primary responsibilities. 8  All speeches are available online at www.bankofengland.co.uk/speeches  8  Without cooperation, host authorities may become more inclined to impose local requirements on domestic entities, to insulate domestic stability in cases where there is no support from the group or coordination amongst authorities in responding to distress. In a world where many banks and FMIs are highly interconnected both financially and operationally that would generate significant inefficiencies, frustrating the benefits that flow from open international trade and investment. Taking the low road would be a sub-optimal for all, with fewer jobs, lower growth and higher domestic risks. VI. The Path Taken by Brexit  How the Brexit negotiations conclude will be a litmus test for responsible financial globalisation.

We collaborated successfully in several areas over the years, particularly in promoting the greater use of RMB in the region. PBoC’s decision in 2013, under Dr Zhou’s leadership, to appoint the Industrial and Commercial Bank of China as Singapore’s RMB clearing bank was a significant milestone and spurred the growth of Singapore as a key RMB offshore centre. In 2016, MAS announced that RMB assets would be included as part of our Official Foreign Reserves, three years ahead of the inclusion of Chinese bonds in key global bond indices. At the personal level, I have had the pleasure and privilege to interact with Xiaochuan at many international and bilateral meetings. I have always found his views insightful. At our bi-monthly meetings of central bank governors in Basel at the Bank for International Settlements, I would sometimes ask Xiaochuan some rather inconvenient questions – about risks related to shadow banking or industrial overcapacity in China. Xiaochuan would always answer these questions, as well as those from other governors, with a disarming candour and clarity, never avoiding the hard issues. This not only helped to build trust among his counterparts in the international community but also endeared Xiaochuan to many of us as someone we could count on for insights into the complexities of the Chinese economy and financial system. Today, Dr Zhou will speak on “The Rise of Technology in Finance – Opportunities and Challenges for Central Banking”. Many of us are familiar with Dr Zhou’s views on financial and economic reforms.