The revisions also aim to better support the development of domestic expertise and capacity in core functions of the banking industry. Third, a shared security operations centre for the financial industry (FINSOC) will be established in coordination with the industry to support the continuous and proactive monitoring of cyber threats. Finally, by 2018, we hope to operationalise an industry-wide implementation of e-KYC for the on-boarding of customers. Further progress has also been made on the development of the policy framework for domestic systemically important banks (D-SIBs). Survey results collected from banking institutions and financial holding companies earlier this year are currently being analysed and will facilitate further refinements to the assessment methodology to identify D-SIBs. This will form part of the D-SIB policy framework which will be released later this year for industry consultation. Beyond the immediate term, the Bank is also looking at introducing enhanced standards on measuring capital requirements and outline expectations on recovery planning, in line with global reforms. In doing so, we will engage the industry on the potential domestic implications, and make adjustments where necessary to ensure that these standards are phased-in seamlessly. A World of Contrasts: Shifting From Macro Masterplans to Micro-Cellular Transformation Malaysia’s transition to a high-income economy will require careful attention to the context in which policies are developed and pursued. In particular, behavioral changes shape the way people live and work. Thanks to globalisation and digitalisation, individuals are much freer to dictate their living, working and financing arrangements.

Otherwise there is the danger that the burden of the adjustment will be born disproportionally by the traded goods sector that might have detrimental medium term consequences. While the near term outlook in the global economy is rather gloomy, the situation in Iceland is quite different. A prolonged growth phase was followed by one year, 2002, of a minor contraction, but at present we foresee a new period of growth when our task will be to maintain economic balance. The Central Bank is determined to keep inflation under control during the coming years of extensive activity in the economy, thus maximising the long term benefits of the extension of the export base. Ladies and Gentlemen The structure and diversity of the Icelandic economy has changed radically in recent decades and the legal framework has been modernized. Only a few decades ago the Icelandic economy had a narrow production base when fishing and fish processing were by far the most important activity. Today, the Icelandic economy has a broad base. Fishing continues to be important, but various industries have also developed, exploiting among other things the vast opportunities offered by the revolution in information technology. Strong companies successfully compete in the international market in various fields, including among other things communications and financial services. The liberalization and opening up of the economy demand close cooperation with other nations. In that respect it will be important to cooperate with businesses and public authorities in Europe, not the least in Germany.