In this respect, three points are worth mentioning: ·  the monetary policy framework contains a wide set of instruments chosen with a view to observing the principles of market orientation, equal treatment, simplicity, and transparency. The decentralisation of the operations of national central banks has undoubtedly contributed to the smooth functioning of the framework. Maintaining a close contact between commercial banks and their national central banks has helped the financial markets to quickly adopt the harmonised practices relating to open market operations, eligible collateral for credit operations and minimum reserve systems. ·  operational efficiency is highlighted by the precise adjustment of banking liquidity and effective steering of short-term interest rates; the Eurosystem has demonstrated this th efficiency, in the days after the tragic events of 11 September 2001, by acting quickly and by ensuring a smooth and orderly functioning of the European financial markets. ·  security is provided by the procedures and systems implemented, both for the execution of interbank transactions, and vis-à-vis large-value payments. The inter-bank market became integrated thanks to the setting up of the Target system for the real-time transfer of largevalue payments throughout the euro area and in other EU countries. Let me turn now to the introduction of euro banknotes and coins, which has been the last step of a now more-than-twenty-year process of monetary integration. The euro changeover On 1 January 2002, the euro banknotes and coins were issued and became legal tender in the countries participating in the euro area.

The network of trade unions and branches would provide the life insurance co-op with a clear advantage over private enterprise. 4. To ensure that the co-op would succeed, the realist in Dr Goh laid down a few principles for its operation. First, the co-op must be fully competitive with private enterprises and cannot expect privileged treatment from the Government. Second, the co-op must have effective management. Third, all levels of staff should be recruited based on merit and not affiliations with the labour movement or government. It was the steadfast adherence to these sound principles that has kept INCOME successful over the past 40 years. The growth of Singapore’s insurance industry 5. At INCOME’s 30th anniversary celebration, I had sketched out the changes in the global financial landscape, and how MAS had to liberalise the domestic insurance industry. Reputable foreign insurers were allowed to set up in Singapore or enter into strategic alliances with existing local insurers. The hope was for the entry of new players to engender competition, which would in turn promote greater innovation and raise the efficiency of the incumbent insurers. MAS also worked on deepening the local talent pool and fine-tuned the already prudent regulatory framework. 6. Ten years on, these efforts have yielded significant results. The Singapore insurance industry, which saw a number of acquisitions, consolidations and new entrants, experienced strong growth, with total assets tripling to $ over the past decade. The industry has also matured in terms of the breadth and depth of products and services offered.