fired power plants, we need to get three things right : credibility, incentives, and partnerships. getting credibility right let me start with getting credibility right. this means credible taxonomies, transition plans, and sectoral pathways. first, credible green and transition finance taxonomies. taxonomies provide a science - based and objective definition on whether economic activities are green or transition. they serve as a guide to investors and financiers who seek to channel capital into activities which support transition. mas has partnered the financial industry to co - create a taxonomy that is aligned with the goals of the paris agreement and relevant to both singapore's needs and the needs of asia more broadly. it was not an easy task. the journey has taken almost four years and four rounds of public consultation. i am happy to share we will launch the singapore - asia taxonomy today. this is the first taxonomy in the world to comprehensively define transition activities across eight focus sectors. most taxonomies define what is green and what is brown, leaving out the bulk of economic activities that are in - between. the singapore - asia taxonomy adopts a traffic light classification system :'green'to denote activities that are aligned to a 1. 5 degrees celsius outcome ; and'amber ', to denote activities that will move to'green'over a defined period of time or facilitate significant emissions reduction in the short - term. activities must meet strict thresholds and criteria to qualify as'amber'and these thresholds have a sunset date. this new taxonomy will enable financing to flow to climate - friendly transition activities while minimising the risk of greenwashing. the taxonomy also provides a credible framework to phase - out coal - fired power plants, through setting entity and facility - level criteria that are aligned to a 1. 5 degrees celsius scenario. the next step is to enable the taxonomy to facilitate cross - border financial flows to support green and transition projects in other geographies. we have embarked on plans to enhance interoperability of the singapore - asia taxonomy with the taxonomies of the eu and china. second, credible transition plans by financial institutions. 3 / 8 bis - central bankers'speeches more than 650 financial institutions from over 50 countries have voluntarily adopted net zero targets and joined the glasgow financial alliance for net zero, or gfanz. many have developed transition plans to achieve their net zero targets. the three singapore - headquartered banks, dbs, ocbc and uob

koh yong guan : risk management development in singapore opening address by mr koh yong guan, managing director of the monetary authority of singapore, at the first mas risk conference, singapore, 31 january 2002. * * * ladies and gentlemen introduction it is my pleasure to address the first mas risk conference. i will cover two areas : • first, the changing financial landscape and the challenges they pose for risk management ; and • second, the introduction of three risk management initiatives. changing financial landscape and challenges over the last few years, there has been a fundamental change in the volatility of financial markets. the frequency and the contagion effects of crises affecting financial markets have also risen. the volatility of financial markets has increased. the lowering of regulatory barriers to capital flows has integrated global financial markets. this has increased the correlation and the transmission of volatility from one financial market to the next. as a result, the diversification benefits derived from investing in several markets have dissipated, leaving market participants exposed to greater financial risks than before. the emergence of complex derivative instruments has increased market liquidity, but also financial risk for those who are not well acquainted with the use of these instruments. while these new instruments have allowed market participants to transfer their credit risks and enhanced the efficient pricing of such risks, the use of derivatives for speculative purposes can result in large losses. the basle capital accord of 1988 was a landmark document for the banking industry. it helped increase the capital held by internationally active banks, and created a more level playing field for banks under different jurisdictions. however, there were some weaknesses in the accord. the most important of these was the practice of assigning the same risk weight to all counterparties in each class, irrespective of the differences in their credit - worthiness. these issues led regulators to propose a more risk sensitive framework. the proposed new capital accord will have a great influence on the risk management practices of banks. the new accord, however, poses challenges to asian banks and regulators alike. banks will have to develop more sophisticated risk management capability while regulators will need to build up technical knowledge as well as supervisory resources to validate banks ’ risk management systems. as financial markets progress towards greater transparency, the market disciplinary mechanism will reward banks that manage their risks effectively, and penalise those that do not. good risk management practice is thus even more essential for banks to maintain their competitiveness over the long run. the frequency of shocks has increased. in the