The FOMC has not decided what kind of operating regime it wishes to run in the long run, but one lesson from the crisis is that not all operating frameworks may be robust to a wide range of circumstances, such as implementing policy at the zero lower bound. If one wished to retain the option that the balance sheet could be deployed as an active tool for policy implementation at this threshold and then gradually revert to a passive role when conditions normalize, then one needs to consider how to transition into and out of different operational modalities. This requires operational flexibility. A byproduct of a central bank’s portfolio-expanding asset purchase programs is an increased supply of reserve balances in the banking system.43 Thus, once balance sheet tools are deployed, the central bank will find itself operating in a system with reserve abundance if it wasn’t already, and will need to adopt instruments and arrangements that can deliver interest rate control accordingly. This imperative could imply switching operating regimes—from a corridor regime to a floor regime, or from a liability-driven floor to an asset-driven floor—and staying in the 8 / 13  BIS central bankers' speeches  new regime for an extended period. Some central banks, such as the ECB, have monetary policy implementation frameworks in which this transition happens relatively seamlessly, while others, such as the Fed before the crisis, required significant changes to tools and operations.

We are working to anchor in Singapore centres of excellence to undertake Asia-centric research on green finance and build a talent pipeline. In October, we announced the launch of the first research and talent development institute focused on green finance – the Singapore Green Finance Centre – a collaboration between Singapore Management University and Imperial College Business School. Green FinTech Finally, let me focus on the role of FinTech in enabling trusted and efficient sustainable finance flows. We call it Green FinTech. For this year’s Singapore FinTech Festival, theFinTech Innovation Challenge focuses on challenges faced by financial institutions with respect to sustainability and climate risks. The enthusiasm for applying FinTech to sustainable finance has been overwhelming. We received more than 600 submissions from over 50 countries – the highest number of submissions since the Innovation Challenge began in 2016. MAS is pleased to announce we will be embarking on Project Greenprint – a technology platform aimed at promoting a green financial ecosystem. Project Greenprint aims to strengthen three key elements in that ecosystem: mobilise capital; monitor commitment; measure impact. First, mobilise capital. SMEs and FinTech firms working on green and sustainable projects often face difficulty accessing capital in an efficient manner. Project Greenprint provides a platform for these firms to connect with financial institutions and investors to access a wider pool of capital and green solutions. Second, monitor commitment. Investors and financial institutions supporting green projects must be able to monitor whether the projects are indeed meeting their sustainability commitments.