. growing global financial integration, financial innovation and evolution of new financial products and massive use of electronic technology in financial services have made our job even more challenging. 4. emerging asian market economies are now characterized by rapid financial globalization andintegration which has contributed to increased volatility of capital flows and rapid transmission of financial crises. deepening and broadening of the financial sector has created more financial risks and vulnerabilities in the financial system of our economies. the presence of informal markets and shadow banking which often leads to a weaker transmission of the monetary policy has made the central banks ’ role more challenging. increasing new financial products triggered by sophisticated information technology, massive bis central bankers ’ speeches cross - border capital flows resulting to volatility in exchange rates and uncertainty of the spillover effect in the domestic economy are added challenges for we central bankers towards making our financial system more stable, inclusive, and economic growth friendly. 5. these challenges call upon the central bank authorities to recast monetary policy objectives and instrument, to strengthen regulation and supervision and exercise macroprudential measures as a complement to monetary policy. priority has to be accorded in identifying all the sources of risk and imbalance that can have systemic implications for the economy ’ s growth and stability. our monetary policy also needs to address how financial resources are better allocated to promote growth and jobs along with ensuring macroeconomic stability. furthermore, there is a need to effectively integrate or coordinate monetary, regulatory and supervisory functions into coherent frameworks for the maintenance of financial stability and promotion of inclusive economic growth. 6. this 49th governors ’ conference and high level seminar aims to discuss some of these pertinent issues. what we have learnt is that financial system can have robust growth and can be stable only in an environment of real economy growing in a sustainable manner. thus a strategy to promote economic growth must be an integral part of the financial sector development strategy. deliberations and discussions on these important subjects have drawn the interest of the global leaders including the central bankers and international financial institutions, particularly after the recent financial crisis. we will have the opportunity to hear thoughts and views on these relevant topics from the distinguished speakers from renowned institutions. i hope that it will be very much rewarding to all of us. 7. for many of you, this may be the first time in nepal or you may be visiting nepal after an interval. i hope that your stay in nepal will be refreshing and memorable one. you will have an opportunity to explore more about our

rich culture, nature and the friendly people during your stay and during the social events that would take place following the meetings. 8. let me close my remarks by once again welcoming rt. honorable president, honorable finance minister, fellow governors and distinguished delegates to this 49th governors ’ conference / high level seminar and the meeting of board of governors in nepal. i look forward to a rewarding discourse and exchange of views and experiences among fellow governors which will help better deliver our central banking roles and responsibilities. thank you bis central bankers ’ speeches