responsive plans. this is a first step for thailand. given the borderless cyber world, collaboration on cyber security among asean countries needs to be enhanced. asean banks have to step up efforts and join hands in setting up processes and tools for sharing cybersecurity incidents, exchange of information and knowledge, conducting cyber attack exercises, and developing cyber security experts. secondly, there has to be sufficient immunity against the boom and bust of financial cycle. we have seen many financial crises over the years. the global financial crisis, whose total magnitude of economic costs are still being tallied is the latest example. as the financial cycle is one of the main drivers of financial instability, taking action to counteract pro - cyclical behaviours and reduce potential systemic risk build - up is necessary. the basel iii framework of pro - cyclical capital buffer and systemically important financial institutions ( sifis ) capital surcharge are among the first initiatives by a global standard setter. having good buffers in place will provide the financial system with an immunity against the large swing of financial cycle and financial volatility, as going forward, the potential of policy normalization in advanced economies and yield snapback could trigger capital reversal and foreign exchange liquidity squeeze in many emerging countries. changes in regulations and a greater emphasis on financial stability by policy makers, however, is only half of the solution. equally important are the roles of commercial bankers who contribute directly to the stability of the financial system. banks need to remain vigilant and look through the cycle while assessing credit risk and building up buffers. buffers such as provisions and capital have to be built - up during good times to absorb any losses during rough times. in short, decisions need to be based more on long - term views rather than short term views. basing decisions on long - term views is an important factor for commercial banks ’ practices. during periods of low growth and low yield, banks should refrain from unsound search - for - yield behaviours or facilitating aggressive search - for - yield behaviours that could build - up systemic risk and cause financial instability. thirdly, behaviour and culture within financial institutions must gear towards good governance, soundness, and sustainability to pre - empt unwarranted risks. during the last asian and global financial crisis, excessive risk - taking behaviour was one key driver. short - sighted views on risk were embedded in the practice of management and employees. this was defined and reflected in the structure on rewards,

accountability, personalities, as well as check and balance mechanisms, or lack thereof, within the organization. more recently, the manipulation of the london interbank offered rate ( libor ) which has done serious reputational damage to the banking industry and reduced public trust was an example of misbehaviour fostered by inappropriate cultures. while events such as the financial crisis, and other scandals have continuously triggered waves of regulatory reforms, those are not enough and our work is far from over. today, there are still examples of poor corporate governance and misconduct resulting from the root - cause of inappropriate behaviour and culture within banks. recently, fraudulent practices in a large global bank were exposed where bank accounts were opened without customers ’ consent or knowledge. banks themselves need to create culture that encourages management and employees to have the right values and behaviour. this behaviour and culture cannot be detected quantitatively and similarly to the way we assess financial data, or risk - taking investment. let me demonstrate by using an iceberg to paint a clearer picture. the tip of an iceberg above the water is what we observe through banking performance, financial information, and investment portfolios. although the tip may show good performance records, the larger portion of the iceberg under water is what determines its strength or fragility. unawareness of small cracks in the iceberg could result in its unforeseeable disintegration. corporate culture and behaviour is a part of this portion under water and is an influencer of decisions within the organization. building corporate culture and behaviour that fosters good governance, soundness, and sustainability therefore has to be instilled into the organization. for asean banks, we have learnt our lesson from the asian financial crisis and bankers who had endured through that period are fully aware of the associated risks and their consequences. going forward, however, with new and younger generations of bankers, these lessons may not be as fully appreciated. newer generations may be less aware of the costs associated with excessive risk - taking behaviours and the aggressive search for higher yields may be prevalent. in this transitional period, it is therefore even more imperative that the proper culture and behaviour be embedded into every level of the organization, starting from the highest level at the board and cascading down to every level of management and staff. fourthly, financial institutions need to embrace sustainable banking to ensure sustainable success. the concept of sustainability plays an increasingly important role in our global and regional development. global warming, growing inequality of wealth and opportunity