Deposit accounts have increased from 19,738 deposit accounts per 10,000 adults in year 2000 to 29,311 deposit accounts per 10,000 adults this year. Similarly, there has been significant increase in loan accounts from 3,105 loan accounts per 10,000 adults to 8,600 loan accounts per 10,000 adults. More than 80% of our adult population have some form of deposit accounts. The ranking by World Bank’s Consultative Group to Assist the Poor shows that Malaysia is in the 20th position globally, [Singapore is in the 16th position; Thailand: 33rd; Indonesia: 70th; and the Philippines: 71st]. While we have made considerable progress in improving financial inclusion agenda, the Bank is unrelenting in our aspiration to shape our financial system to be more inclusive and effective in supporting a balanced economic growth for our country. Our financial sector Blueprint that will chart the direction of development of our financial system in the next ten years places a high priority on the financial inclusion agenda. Among the areas of focus are the development of cost efficient delivery channels that will enhance the outreach of financial services, expand the range of products and services to meet the distinct financial needs of the underserved and strengthen the institutional arrangements to enhance the capacity of providers of such financial services. Equally, important will be the attention accorded to financial consumer education and protection in which the standards of consumer care are high and consumers have choices and are confident about making their financial decisions.

However, for those banks with large client clearing volumes, disallowing client initial margins to compensate for potential future exposure may inevitably create constraints on their leverage ratios. This can dis-incentivise the provision of such client clearing services. This may have created an unintended impact on the market’s incentives and overall ability to centrally clear, which will be inconsistent with the objectives of the central clearing. Therefore, in the next phase of our work on the reforms, sector regulators will have to work closely towards greater consistency and coherence with the inputs of all market participants. Balancing between domestic market concerns and international market access 13. As each jurisdiction embarks and complete rebuilding its part of the global house, it is also important to consider how domestic rules would operate and interact across borders and against the global standards. 2/3  BIS central bankers' speeches  14. The recent comparability determination between the CFTC and the European Commission on platform trading and margins for un-cleared derivatives serves as an excellent example of how authorities have worked together to reach a common agreement and approach, bridging the requirements of two major regulatory regimes. Asia-Pacific authorities are working closely with one another as well, and also with the CFTC and EC, to address cross-border issues. Japan’s FSA (Financial Services Agency) and Australia’s APRA (Australian Prudential Regulation Authority) had also announced their recognition of various jurisdictions’ margin requirements for un-cleared derivatives, including Singapore and Hong Kong. 15.