african americans. we expect the new talf agents to begin operation in november. in the area of procurement, the federal reserve uses various methods to reach women - and minority - owned contractors. we hold vendor fairs in washington to publicize opportunities. for example, on september 2, representatives of approximately 60 companies talked to board staff about contracting possibilities. we are a member of the national minority supplier development council, and we regularly attend national and local vendor fairs and conferences ( including several this year ) to share information on how to do business with the board. our procurement staff works with board operating divisions in all phases of the contracting process. in addition, our procurement policies require that nearly all contracts include a subcontracting plan that describes the vendor's commitment to provide small and / or minority - and women - owned companies the maximum practicable opportunity to participate in contract performance. the board's chief acquisition officer oversees compliance with the board's procurement policies and procedures, working with staff responsible for outreach to women - and minority - owned companies. finally, i would also like to mention briefly the partnership for progress, a federal reserve initiative launched last year in recognition of the importance of healthy minority - owned depository institutions to many communities in this country. this initiative supports minorityowned depository institutions through outreach and technical assistance and by training examiners to better understand some of the unique challenges faced by minority - owned institutions. the federal reserve system remains committed to diversity and inclusion in our programs and activities, and i appreciate the opportunity to have this dialogue. again, thank you for inviting me today.

what i have said so far has focused on perspectives from the point of view of individuals within the industry. however, compliance must also be viewed in relation to the broader financial system and society itself. a key lesson from the global financial crisis in 2008 was that individual behavior, even though well intended and rational from an individual ’ s point of view, can cause massive damage at the aggregate level. in many ways, the complexity of rules that apply to the financial system is a reflection of its important role in the economy and society. an efficient, productive and resilient financial system supports and contributes to economic growth and the overall well - being of the people. in contrast, financial busts can have a destructive impact on the broader economy, impacting the livelihood of ordinary people. this is the painful lesson from the history of financial crises. despite the huge amount of resources being invested in compliance, we still uncover many banking, market manipulation and rigging scandals. these cases illustrate again that rules, although necessary, are not sufficient to maintain the integrity of the financial system. these cases have damaged the confidence and trust of society in the system. one solution for this is a stronger focus on ethics and professional standards to take into account how actions impact the wider society. in other words, financial institutions must recognise and embrace their role as responsible corporate citizens. this means : establishing a framework that promotes ethical behaviour and decisions ; going beyond what the letter of the law permits, to understanding and complying with its ‘ spirit ’ ; and seeking opportunities to add value and contribute to the well - being of society. 2 / 4 bis central bankers'speeches viewed from this perspective, the values of a responsible citizen are antithetical to money laundering, terrorism financing and illegal behavior. anyone who is a responsible citizen will not engage in these activities and will actively seek to eradicate them. with no shortage of recent examples of financial institutions that have flirted with questionable conduct, it should also be very clear by now that involvement in illegal activities is fundamentally incompatible with the trust the public expects. compliance in partnership with others in today ’ s world, no one has a monopoly on knowledge, power and competence. it is not solely the job of the regulator to ensure the integrity of the financial system. the industry needs to be an active and responsible partner. all parties have a stake to ensure that the system is not only functional, but thriving. bank negara malaysia will continue to remain firm in ensuring the orderly conduct of the financial system