1/3  BIS central bankers' speeches  To help us achieve this balance, we emulated the Financial Technology Regulatory Sandbox introduced in some other countries to provide an avenue for industry players to pilot or test new solutions within a safe space. Here, industry players have the opportunity to trial new financial technologies that support sustainable goals. At the same time, we are able to better understand and observe market impacts and tailor our regulatory and supervisory response accordingly. To date, 19 solutions have been tested in the sandbox. Of this, over 60% have been successfully rolled out into full-scale production. The Bank has also introduced new digital bank licences and implemented a series of changes to existing regulations applicable to agent banks, microinsurance, and payment and remittance services to enhance financial inclusion and consumer protection. Secondly, we continue to support a meaningful role of the financial sector in helping households and businesses meet transition challenges. While we are encouraged by a number of financial institutions in Malaysia that have announced net-zero or carbon neutral goals, it is imperative for financial institutions to do more to support transition. We expect this to gain momentum with the implementation of the Climate Change and Principle-based Taxonomy for financial institutions that was issued by Bank Negara Malaysia in April this year. By shining a light on climate risk mitigation and adaptation activities, the taxonomy will strengthen incentives for both financial institutions and businesses to adopt practices that are aligned to climate goals.

Jessica Chew Cheng Lian: Opening remarks - World Bank's Sustainable ExchangE Development Series (SEEDS) Opening remarks by Ms Jessica Chew Cheng Lian, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the World Bank's Sustainable ExchangE Development Series (SEEDS), 25 October 2021. * * * Good morning. It is a privilege and pleasure to be a part of this year’s edition of the World Bank’s webinar series on sustainable finance. We are grateful to the World Bank for organising this programme. Learning from our peers continues to be one of the most important and practical ways in which we can help each other effect meaningful change to ensure that finance truly serves our communities. The effects of the COVID-19 pandemic have now been with us for almost two years. While ambitions to pursue sustainable finance goals started well before the pandemic, the pandemic will surely be remembered as a defining period in shaping the path taken to a more sustainable future. The pandemic has extracted an enormous toll not only on global health, but also on poverty levels and inequality. More vulnerable groups, including those who earn lower incomes, have lower levels of education, or are holding less secure jobs, have borne a disproportionate brunt of the fallout from the pandemic. While policy measures are helping to mitigate these effects in the short term, the longer lasting impact on society and future economic prospects are likely to be far more significant. This could amplify pre-existing inequalities, particularly in emerging economies.