business models, while guarding against the attendant risks. the growth of the regional financial markets will also accompany such financial integration and cross border banking and investment activity. this could open up new sources of revenues for the financial sector, at the same time, new risks that may require upgraded skills and infrastructure to manage. policymakers will try to harness the economic and bis central bankers ’ speeches financial benefits these bring while ensuring that risks will be well managed. for financial institutions, there will be a need to enhance capacity in operations and connectivity – developing the necessary infrastructure, systems, counterparty lines and settlement capability across the region. risk management also needs to be enhanced correspondingly, capability of assessing market and credit risks which could be challenged by different liquidity conditions and market environments. financial institutions must also be ready and able to comply with diverse legal and regulatory expectations in each country of operation. in this respect, the implementation of robust and consistent group - wide risk management, and a strong risk culture, is critical to mitigate risks of group contagion. another critical element is the investment in talent development – both in industry and in the regulatory community – to provide a strong pipeline of skilled individuals required for the management of a more integrated financial sector. sufficient resources and attention is needed to develop and implement strategies to attract and retain the right talent. the demand for talent particularly in the area of risk management and compliance continues to rise in the aftermath of the global financial crisis as financial institutions adjust to implement regulatory reform measures. similarly, training and development programmes must be continuously enhanced to ensure that skill sets within the financial institution are kept current and relevant. regional training institutions such as the asian institute of chartered bankers and the asian banking school and the south east asian central banks research and training centre, or seacen, amongst others, will play an essential role in meeting the demand for new talent with the necessary skill sets and experience. concluding remarks the success of financial integration in asean will be critical to support the on - going transformation of asean economies in the coming decades. no doubt there are risks, challenges and setbacks even. but benefits and risks are two sides of the same coin. we should be confident enough, asean is more than 40 years old now, as we chart our progress towards a more integrated economy as a group. our ability to realise these benefits in future will largely depend on the investments and priorities that we make today. our priorities should work to improve our ability to effectively manage financial stability in a more integrated financial system,

and to build stronger, more resilient and dynamic institutions that will effectively serve the economic needs of the people in this region. on that note, let me conclude my remarks and wish all of you a productive and fruitful conference. bis central bankers ’ speeches