a host of factors behind involving legal and governance issues, and political risks. but whatsoever the reasons, it is a gap that can only be filled by bringing together capital and know - how from the public and private sectors. indeed, the g20 has recently highlighted the importance of infrastructure investment as a growth driver, but many challenges remain in overcoming the obstacles to identifying “ bankable ” projects. 9. in the face of immense uncertainties and challenges ahead of us, imf ’ s assessment of the prospects and risks, as well as advice on policy response for the region at this juncture is particularly important. we look forward to the presentation by imf and the dialogue during the panel discussions. 10. thank you. bis central bankers ’ speeches

currently anticipated. 4. while monetary policy normalisation may reflect a pick - up in the growth momentum in the us which should help support asia ’ s exports, the strength of this support is subject to some uncertainty. we also need to be aware that economic integration has increased within the region. as identified by the imf in the reo, the increase in trade and financial integration have strengthened the propagation of growth shocks between regional partners. 5. so, what are our major policy challenges? with the us rate hike cycle drawing nearer, the window for the region to get prepared for a tightening in financial conditions is getting smaller. it is therefore important for policy makers to contain further build - up of leverage, and to ensure banks will properly manage interest rate and exchange rate risks, and can withstand any potential deterioration in loan quality. it is encouraging to see that policymakers in many economies in the region have taken pre - emptive policy actions to lower credit growth and slow house price inflation. the biggest challenge now is when and how to relax these measures when market conditions reverse. 6. second, policymakers will need to have sufficient backstop to mitigate systemic risk in the financial system in the event of a disorderly exit of us monetary policy. in this regard, the asean + 3 chiang mai initiative multilateralisation arrangement, the regional financial safety net, could help to mitigate the risk of financial contagion by providing financial resources to members in the event of short - term liquidity difficulties. bis central bankers ’ speeches 7. third, structural reforms remain the best way to reduce vulnerabilities and achieve sustainable growth over the long - term. we have been moving forward on this front through a deepening of intraregional trade, strengthening private and public - sector balance sheets and improving market infrastructure. but a lot more needs to be done. there is still ample scope to tackle structural impediments to growth and stability such as further capital market development, product and labour market reforms and service - sector reforms. all these areas require strong political commitment and continuous efforts in order to achieve successful outcomes. 8. lastly, i would like to highlight a key driver of sustained economic growth that is particularly important for asia – infrastructure investment. unfortunately, we still see big gaps for infrastructure financing today despite the large savings in the region, and infrastructure development has been slow and inefficient in many countries. one of the major reasons is the shortage of “ bankable ” projects. there are