for businesses. this is especially true for innovative small and medium scaled enterprises whose value tends to be more closely linked to intangible assets. to a large extent, this is because ip issues are still not well understood. the financial industry has not devoted enough resources to this increasingly critical sector for future growth. frameworks within financial institutions for lending against ip are consequently not well - developed. this is quite surprising when one considers that way back in the 1880s, ip was first used as collateral to secure funding by thomas edison with the incandescent electric light bulb. it was ground - breaking. it was a feat ahead of its time. ip is an ownership over an innovation. innovation reflects an investment in a knowledge assets with an opportunity to make profits. thus, understanding ip makes good business sense and offer fund providers a good opportunity for business growth and opportunities. greater recognition of ip as a relevant factor in financing decisions is therefore a proven concept. different financial players harness the potential of ip in different ways. the varying business models and risk appetites within the financing ecosystem will determine how ip fits bis central bankers ’ speeches into financing considerations. for example, banks have to prioritise depositors ’ interests and would not be expected to finance ventures with high risks. however, this is not true in all cases. smes with proven track records should be within banks ’ sights, in such cases the value - add of ip should be more effectively leveraged. indeed, in other emerging economies, progress has been evident. the thai sme bank, chinese bank of communications and the federal development bank of brazil already take ip into consideration for financing. malaysia ’ s financial services industry should also take this opportunity created by this new growth industry. therefore, it is an opportune time that the boards and senior management of the financial service fraternity in malaysia to begin to actively explore pragmatic approaches to assimilate ip into existing financing considerations. an important starting point is building a stronger knowledge base of ip issues within financial institutions. this includes identifying staff within your institutions to learn about these issues and providing them with local and international opportunities for training or exposure in ip. the industry, working together with relevant authorities, agencies and trade associations, should also come together to agree on specific initiatives to overcome barriers to the more effective use of ip assets in financing considerations. this includes developing practical guidance for both businesses and financial institutions in identifying, managing and valuing ip assets, and a way to include such assets within an institution ’

parallel on risk sharing and risk reduction, and we look forward to an ambitious mid - term review process of the capital markets union agenda. a more complete emu is the foundation for a stable, flourishing and resilient euro area economy that will be the best contribution to global economic growth and financial stability. the ecb will continue to do its part by delivering on its mandate. 2 / 2 bis central bankers'speeches