- dependence within the region, as evidenced by the rapid expansion of intra - regional trade, particularly in final products, and correspondingly reduced dependence of the region as a whole on import demand from developed economies. i have no doubt that asian financial markets should remain open and, for those less open, continue with financial liberalisation, in order to benefit from the greater efficiency in the international allocation of capital that comes with globalisation. but there is a need also to reduce vulnerability by building bigger, deeper, more robust and diversified capital markets. while the interesting subject of monetary integration, which would provide a long - term solution, has been receiving some nascent attention, efforts to enhance the efficiency of financial intermediation within the region should be stepped up. asia as a whole is one of the largest exporters of capital and, at the same time, also one of the largest recipients of foreign direct investment and foreign portfolio investment. the underlying process of capital flows associated with this roundabout phenomenon involves much greater financial volatility and instability for the region than the situation where a greater proportion of savings in the region could more readily find their way into investments in the region. this underscores the importance of greater efforts to enhance the efficiency of financial intermediation within the region. indeed, capital market reform is high on the agenda of most asian economies. there has also been considerable progress in the diversification of financial intermediation channels, specifically in the development of the bond market. at the end of last year, the amount of domestic bonds outstanding in eight economies1 that we have surveyed was equivalent to 47 percent of the combined gdp, more hong kong, indonesia, korea, malaysia, philippines, singapore, taiwan and thailand. than double the 20 percent at the end of 1995. over that eight - year period, the bond market ’ s share in total financing grew from 11 percent to 19 percent. but these numbers are still low for the bond market to play a meaningful role in contributing to financial stability and enhancing the efficiency of financial intermediation. a number of regional initiatives are currently underway to accelerate this development. under the apec forum, hong kong, china, joined by thailand, korea and the world bank are leading the apec initiative on the development of securitisation and credit guarantee markets. the asean + 3 forum has initiated an array of studies under the asian bond market initiative ( abmi ) while the emeap central banks have already launched asian bond fund i and are now working

me start with the role of aml / cft supervisors. in the first instance, it is essential that national aml / cft supervisors encourage the establishment of partnerships for the sharing of information through the development of clear guidance in addition to a verification process that is accessible, transparent, and capable of evolving over time. at the central bank, notwithstanding the fact that the aml regulation will not be applicable until july 2027, work is well underway on developing the necessary framework and governance procedures. the verification process will require not only the review of the application to ensure that it conforms with the requirements of article 75 but will also require the central bank to consult our colleagues in the office of data protection commissioner in relation to the data protection impact assessments ( " dpia " ). it will also be necessary to for the central bank to consult with the financial intelligence unit where necessary. in addition to fulfilling our statutory role in verifying partnerships for information sharing, in my view there is an additional and equally important role that aml / cft supervisors must play in order to realise the full potential of article 75 aml regulation. that is our role in fostering and supporting the development and adoption of technologies that facilitate the sharing of sensitive information through the use anonymisation technologies. the so - called privacy enhancing technologies ( pets ) have the potential to revolutionise information sharing between private sector operators. aml / cft supervisors such as the central bank of ireland can, i hope, act as a catalyst for the development and implementation of such technologies. 3 / 5 bis - central bankers'speeches one such way the central bank can do this is by continuing to enhance our engagement with innovation in financial services. in 2018, we launched the innovation hub for firms to engage directly with the central bank on innovation. since the launch of the innovation hub, the innovation ecosystem has continued to develop at pace in ireland and abroad. in line with the continuous development of the innovation ecosystem, we also have continued to deepen our approach by enhancing our innovation hub and outreach programme. this involves, firstly, enhancing the role of our innovation hub to deliver deeper, clearer and more informed engagement with the innovative ecosystem. secondly, we are establishing an innovation sandbox programme to inform the early stage development of selected innovative initiatives which are consistent with our public policy objectives. in july, we announced the theme of our first innovation sandbox programme that is very relevant to our discussion today, that of combatting financial crime. the sandbox