Once growth resumes, the wealth that is generated has to be properly deployed. In this regard, global financial institutions, whose commitment and capacity are being tested by this crisis, need to take a medium-term view of their businesses in this region. Singapore’s response and commitment Let me now briefly say a few words on Singapore’s responses. Like everywhere else, Singapore has experienced tightening credit conditions. We have taken action to address both the inter-bank money markets, as well as the flow of credit from banks to corporations. In the inter-bank money markets, MAS remains focused on ensuring that both the Singapore Dollar and the US Dollar markets continue to function smoothly. For the Singapore Dollar market, we have and will continue to ensure sufficient liquidity, through our monetary operations and standing facility. For the US Dollar market, we established a $ billion swap line with the US Federal Reserve. This line is alongside other swap lines that the Fed has with 13 other central banks, including several in Europe and Asia. As a major funding centre, we took precautionary measures to ensure that global financial institutions operating here continue to have access to US dollar liquidity. The Federal Reserve on its part recognised the importance of providing US dollar liquidity to financial institutions through central banks in sound, well managed and systemically important financial centres, so as to improve global US dollar liquidity conditions as necessary. We have not had to use the swap line, nor do we see any impending need.

  Second, complement existing micro-prudential rules with macro-prudential instruments to address system-wide risks with the aim of ensuring greater resilience of individual institutions, and the financial system as a whole.   Third, enhance comprehensive cross-border crisis management and financial stability surveillance arrangements. This can be done via channels such as the EMEAP Monetary and Financial Stability Financial Committee, which was established in 2007 to enhance regional collaboration and cooperation in the area of macromonitoring and crisis management. Efforts are also directed to strengthen financial safety nets within the region (e.g. cross-border collateral arrangements, currency swap arrangements). We are quite confident these arrangements will further strengthen the resilience of regional financial systems and economies. These measures will become increasingly important in the light of our effort to increase the integration of financial systems within the region.   Fourth, establish a holistic framework for consolidated supervision. All the activities of financial conglomerates are within appropriate risk levels and not overly complex, and the large groups are not a source and channels for amplifying contagion effects. Supervisory cooperation initiatives at the regional level will also be directed at enhancing existing or introducing additional platforms (e.g. creation of supervisory colleges) for discussing issues related to the supervision and resolution of cross-border financial institutions.   Fifth, promote fair and transparent market conduct practices by financial institutions through heightened market conduct surveillance and transparency requirements, while also raising the level of financial capability of consumers through education and awareness programmes.