. third, to support financial market deepening, especially in encouraging transactions and developing interbank rate structure for 3 month to 12 month terms. in line with the enhancement, bank indonesia also accelerates the implementation of financial market deepening program by pursuing the following steps : ( i ) strengthening the role of jakarta interbank offered rate ( jibor ) in shaping the interest rate structure of the money market across tenors from overnight to 12 months ; ( ii ) accelerating the repo transactions in the money market by promoting banks participation in general master repo agreement ( gmra ) ; and ( iii ) bis central bankers ’ speeches alleviating market segmentation and boosting the market ’ s transaction capacity by encouraging banks to open more access to counterparty. distinguished guests, ladies and gentlemen, it seems that under the current global dynamics, the only certainty is the uncertainty itself. and therefore the focus of central banks should be on nurturing the economic growth, while maintaining stability. across the globe, central banks are pressured to continuously pull a rabbit from a hat, offering a formula to tackle the important issues of economic slowdown. nonetheless, we should be mindful that in an era of new normal with political uncertainty, all of us should relentlessly and collectively strengthen the foundations of global financial system. in this spirit, we are bringing all the relevant stakeholders to the table to continue the policy dialogue. hence, i am pleased to have the presence of the participants from east and west : central bankers, financial regulators, global policy makers, and market players. i sincerely believe that sharing perspectives and experiences among stakeholders will equip us with additional significant insights to enhance mutual understanding between authorities and industries towards sound policy responses and implementations. moreover, the presence of all distinguished participants would strengthen communication and collective action commitments in facing the challenges of economic and monetary divergence. finally, once again i would like to express my appreciation to honorable governors, heads of financial supervision authorities, distinguished speakers and all guests for your participation in the seminar, and wish you an enjoyable and fruitful deliberation. i also hope that in the middle of the seminar ’ s tight schedule, some of you are able to enjoy bali and experience its picturesque view and unique cultural identity. after all, this is the place where the movie “ eat, pray and love ” was taken. so please make your time. thank you. bis central bankers ’ speeches

in three key areas to counter systemic risk more effectively : better analytical tools, new instruments that counter the development of risk outside the banking sector and a clearer framework to govern policy actions. the past decade has seen a sustained improvement in the tools available to assess risks to financial stability. better data and better modelling techniques have revealed important insights. developing the analytical toolkit to adequately monitor interconnectedness and contagion requires granular datasets, and the ability to map and link data across entities and markets. the sub - prime crisis in the us banking sector spread to european banks through their direct exposures, but it also spread to insurers through the use of credit default swaps. 10 only a holistic view of the system will allow potential contagion channels to be identified and modelled. and that requires investing in new technologies for data analytics and enhancing the capacity for authorities to link and share data and technical knowledge. the second area of improvement for the macroprudential framework in europe involves keeping pace with developments in the financial system. that requires broadening the range of macroprudential instruments beyond those currently available, which focus almost exclusively on the banking sector. for the insurance sector, the contours of such instruments are taking shape. they include solvency instruments such as symmetric capital requirements for cyclical risks ; liquidity instruments for insurers with a vulnerable liquidity profile ; and instruments to target bank - like activities to ensure macroprudential policy is consistent across sectors. 11 the third area for improvement in macroprudential policy involves establishing a clearer conceptual framework to govern policy discussions and interventions. such a framework would facilitate communication with market participants and the general public, as well as help mitigate any risk of inaction bias. 2 / 4 bis central bankers'speeches for monetary policy the framework is well known and the reaction function of central banks is normally well understood by markets. by contrast, the framework that governs macroprudential policy interventions is much less developed, due in no small part to our limited experience of using these tools. the objective of financial stability is broader than the objective of price stability, so is less easily defined by a single numerical measure. developing the policy framework is challenging and will take time. the esrb approach uses the concept of residual risk, which is the difference between the level of risk and the current resilience of the financial system. 12 in setting up the framework, policymakers need to establish the level of residual risk that