Zeti Akhtar Aziz: Insurance and reinsurance in the aftermath of the global crisis Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the 21st Federation of Afro-Asian Insurance and Reinsurance Conference, Kuala Lumpur, 20 October 2009. *  *  *  It is my great pleasure to be here today at the 21st Federation of Afro-Asian Insurance and Reinsurance Conference in Kuala Lumpur. This Conference reinforces the cooperation between the African and Asian region in the development of the insurance industry. The theme of this year's conference, "the insurance and reinsurance environment in the aftermath of the global financial and economic crisis", is indeed highly relevant as stabilization and signs of recovery are emerging in the world economy. The crisis has tested the robustness and resilience of financial systems around the world. The far reaching implications of the financial crisis have shaken the foundations of the international financial system. The effects of the crisis on the financial systems and the re-thinking by the international community on the issues that have surfaced during the crisis will fundamentally change the future financial landscape. This Conference provides an important platform to discuss the key issues faced by the insurance and reinsurance industry, in particular, in the context of our two regions and to discuss the potential to leverage on our respective relative strengths and the opportunities that the new environment presents.

Hong Kong  Repayment criteria toughened, a risk weight floor of 15% for residential mortgages, LTV on car park spaces and commercial property  Action on car park spaces followed leakages of the house price exuberance into other sectors  New Zealand  Restriction of new high LTV lending to 10% of new loans  Singapore  Debt service ratio, reduced repayment periods, tightened LTV, increased land supply  Norway  Countercyclical capital buffer of 1% from July 2015  UK  Removed incentives for household lending in Funding for Lending scheme. FPC given ability to recommend changes to affordability criteria on mortgage lending. 8  Part of a series of measures. BIS central bankers’ speeches  References Aikman, D, Haldane AG and Nelson, B (2010) “Curbing the credit cycle”: http://www.bankofengland.co.uk/archive/Documents/historicpubs/speeches/2010/speech463. pdf. Aikman, D, Haldane AG and Nelson, B (2014 forthcoming) “Curbing the credit cycle”, The Economic Journal. Bank of England (2009), “The role of macroprudential policy”, Discussion Paper: http://www.bankofengland.co.uk/publications/Documents/other/financialstability/roleofmacrop rudentialpolicy091121.pdf. Bank of England (2011), “Instruments of macroprudential policy”, Discussion paper: http://www.bankofengland.co.uk/publications/Documents/events/ccbs_workshop2012/paper_ kapadia.pdf. BCBS (2010). Basel III: A global regulatory framework for more resilient banks and banking systems. Chari, VV and Kehoe P (2013), “Bailouts, time inconsistency and optimal regulation”, NBER working paper no. 19192. De Paoli, B and Paustian, M (2013), “Coordinating monetary and macroprudential policies”, Staff Reports 653, Federal Reserve Bank of New York. Goodfriend, M. (2007) “How the world achieved consensus on monetary policy”, Journal of Economic Perspectives, 21(4), pages 47–68. Haldane, A. G. (2013), “Why institutions matter (more than ever)”: http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech676.pdf.