Borio, Claudio, and Haibin Zhu (2008), “Capital Regulation, Risk-taking and Monetary Policy: A Missing Link in the Transmission Mechanism?” BIS Working Paper 268, www.bis.org. Carney, Mark (2009), “Some Considerations on Using Monetary Policy to Stabilise Economic Activity”, in Financial Stability and Macroeconomic Policy, Federal Reserve Bank of Kansas City Jackson Hole Symposium. Dokko, Jane, Brian Doyle, Michael Kiley, Jinill Kim, Shane Sherlund, Jae Sim and Skander Van den Heuvel (2009), “Monetary Policy and the Housing Bubble”, Finance and Economics Discussion Series 2009–49, Federal Reserve Board, www.federalreserve.gov. Gertler, Mark, and Nobuhiro Kiyotaki (2010), “Financial Intermediation and Credit Policy in Business Cycle Analysis,” in Friedman, Benjamin M., and Michael. Woodford, eds., Handbook of Monetary Economics, Volume 3, Elsevier, forthcoming. International Monetary Fund (2009), World Economic Outlook, October 2009. BIS Review 118/2010  5  Kohn, Donald L. (2008), “Monetary Policy and Asset Prices Revisited”, speech on November 19, 2008, www.federalreserve.gov. Kohn, Donald L. (2009), “Policy Challenges for the Federal Reserve”, speech on November 16, 2009, www.federalreserve.gov. Kohn, Donald L. (2010), “Monetary Policy in the Crisis: Past, Present, and Future”, speech on 3 January 2010, www.federalreserve.gov. White, William R. (2006), “Is Price Stability Enough?” BIS Working Paper No. 205, www.bis.org. Svensson, Lars E.O. (2003), “Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others”, Journal of Economic Perspectives 17(4), 145–166. Svensson, Lars E.O. (2010), “Inflation Targeting,” forthcoming in Friedman, Benjamin M., and Michael Woodford, eds., Handbook of Monetary Economics, Volume 3, Elsevier, forthcoming, www.larseosvensson.net.

edX, for example, includes over 130 economics and finance courses offered by prestigious providers such as Harvard, MIT and IMF. In short, both the quantity and quality of human capital investment matter. Agility is also a key aspect. Human capital investment must adapt and evolve with its operating environment. The fintech wave has taught us an important lesson; opportunity favours the bold and the wellprepared. More so in times of change. Experience has shown that it is not easy to change even a single function, let alone an entire organisation. That brings me back to another observation of Newton: “The larger the mass, the larger the inertia”. While Newton’s law holds true in physics, bankers can yet defy this axiom by thinking innovatively and being prepared well in advance. The next wave of innovation, growth and emerging industries is primed for release from its current state of inertia. At the moment, financing remains concentrated in traditional economic sectors. Less than 1% of SME financing approvals are directed to new growth areas. While up to 74% of financial sector talent is high-skilled, financing future industries for long term economic growth requires us to think ahead, with new and fresh perspectives. We need talent that can identify and distil the needs and risks of these new growth areas. For a bank, this may mean recruiting and developing not only conventional bankers, but also software engineers, data scientists and technology strategists.