of trades. high volume, low - margin platforms will likely gain in competitiveness. • wealth management will remain a growth industry, especially in asia, where the pool of wealth is growing most rapidly and the need for diversification remains great. • and outside of intermediated finance, companies will seek new ways of raising funds, including through private placements. 6. will this mean a safer financial world? maybe. that will depend on whether we persist in seeing through the regulatory reforms that began a few years ago. it will depend on bis central bankers ’ speeches whether we keep to a sensible balance in regulation – and that includes not over - doing bank regulation and under - doing the oversight of shadow banking. it will also depend on whether we all stay intensely alert to the risks of the future, including especially the risks that we do not yet see or know, rather than focus only on the last battle or on preventing the last crisis from recurring. 7. what of global capital flows? there too we see shifts, as global finance responds to a two - track world of economic growth. the prospect of sub - par growth in the advanced economies for a number of years, together with central bank actions to keep interest rates very low, have led to what is becoming a furious search for yield. pension funds and insurance funds need better yields badly, and they are putting more monies in the emerging markets and other risk assets. 8. this is likely to be more than a cyclical trend. we are seeing a secular shift in assets towards the emerging markets. advanced country funds in fact remain significantly underweighted in emerging market assets, and are gradually correcting for this. at the same time, sovereign debt ratings have been raised in several emerging economies, in asia especially1, at the same time that a number of advanced economies2 have seen their ratings lowered. asia is certainly not free from risks, and there is much work ahead to preserve and improve sovereign ratings. but no one can assume that the recent rebalancing of risk assessments vis - a - vis the advanced economies is temporary. what this continuing shift in global funds also means, however, is that there is critical need to add depth and breadth to asian financial markets. it will not be possible to absorb a greater share of global savings without developing this depth and breadth in markets, and a robust market infrastructure. otherwise, both global and asian capital flows within the region will lead to recurrent bubbles, whether in equities, property

financial institutions to more effectively manage their exposures to china. while usd would remain an integral global settlement currency, rmb is likely to be increasingly used for trade denomination and contract pricing. 29. as we see greater acceptance and use of the rmb as a trade settlement currency, there will also be important implications for the interactions between china and asia ’ s financial markets, and indeed for global financial markets. 30. for one, it will be critical to facilitate the development of a single fungible offshore rmb market, as the market grows in multiple jurisdictions. ( currently, the industry has designated different currency codes, such as the cnh and cnt, to reflect these existing market frictions. ) regulators and market participants will have to work together to avoid fragmenting liquidity across markets, and to promote efficiency in the offshore rmb market. 31. in addition, china plans to launch its international payment system, known as cips, in 2014. the development of a single centralised cross - border rmb payments infrastructure also augurs well for market efficiency and standardised practices for rmb payments across the region. cnbc, 17 jan 2013. “ china ’ s outbound investment leaps to record high in december ”. bis central bankers ’ speeches singapore ’ s role as an offshore rmb market 32. as an international trading and financial centre, singapore will seek to support the growth of a resilient offshore rmb market in the asian region by : i. building rmb liquidity ; ii. enhancing access to rmb for funding and investment purposes ; and iii. integrating the offshore rmb with existing asian local currency markets. 33. firstly, singapore can leverage on its strengths as a key wholesale funding centre to increase liquidity and circulation of the rmb in asia. we are already seeing good growth in rmb deposits, both non - bank and interbank. we are also one of the largest centres for rmb payments outside hong kong. as a major regional funding centre, singapore has traditionally supported the liquidity of the asian markets and can partner china in promoting sustainable offshore use of the rmb. 34. in february this year, icbc singapore was appointed by the people ’ s bank of china ( pbc ) as the rmb clearing bank in singapore. the rmb clearing bank will be an important channel for rmb liquidity to circulate between china to singapore. 35. in addition, pbc and mas together announced an expanded currency swap facility last