freedom to choose appropriate regulatory tools to fit individual circumstances. a uniform, one - size - fits - all international regulatory regime will not work. 23. the most striking application of this principle is in the approach being taken for the regulation of global systemically important financial institutions, or g - sifis. these institutions, because of their size, complexity, cross - border nature, and interconnectedness, would cause significant disruption to the global financial system and economic activity, if they failed in a disorderly manner. there is thus a need for global supervisory cooperation, in order to identify the key points of failure within such institutions. the financial stability board, together with other international standard setting bodies, is rethinking its approach towards the monitoring, sharing, and mitigation of systemic risks posed by g - sifis. bis central bankers ’ speeches 24. a number of the proposals being considered are international in nature, like those improving supervisory cooperation between regulators, and requiring higher loss absorbency capacity for g - sifis. however, primary responsibility for these g - sifis lies with national regulators, who must retain discretion over the specific supervisory stance to take with respect to these institutions. conclusion 25. let me conclude. this is a fertile time for the study of finance and risk. the financial landscape is undergoing dramatic change. the three dimensions of rebalancing that i outlined are still being played out, with many unanswered questions. what should be the balance between markets and regulation? what is the optimal level of capital in the banking system? how can we minimise the risk of liquidity shortfalls? should trading activities be separated from commercial banking? how should incentives be structured to promote sound risk management? can financial innovation help to reduce financial risks? what do we do with financial institutions that are both too big to fail and too big to save? how should macroprudential policies be designed? 26. the sim kee boon institute can play a key role in advancing our understanding of these issues and providing thought leadership. the institute has already published a number of interesting papers on topics ranging from securitisation to the effects of poison pills on corporate governance. i look forward to more insights from the institute in the years ahead. we can expect nothing less from an institute named after one of the pioneers of the singapore civil service. sim kee boon helped to chart singapore ’ s economic development through the turbulent 1970s, when stagflation and oil price

expertise, and skill sets. take for example, a client adviser working in a wealth management function. ten years ago, maybe he was only expected to offer advice on simple loans and basic investment products. today, the client is more sophisticated and demanding – he expects more comprehensive bis central bankers ’ speeches and customised wealth management solutions. the banker must be able to offer advice on alternative investments, options for intergenerational wealth transfer, and risk management strategies. in short, he needs much more depth. second, cross - functional adaptability. job functions and business lines are no longer as static and predefined as they used to be. it is increasingly important that finance professionals are exposed to a broader range of business areas. movement across business lines generates fresh perspectives that could in turn help to drive innovation and identify new areas of competitive strength. a compliance professional, for instance, may start off on compliance matters that pertain to credit activities. over time, it would be useful to widen his compliance knowledge in other areas of business such as capital markets. this broader exposure will help him to think about compliance and risk management issues across different functions of the bank in a more consistent and coherent fashion. such a capability will be a key asset when taking on larger functions and responsibilities in the bank. third, asian knowledge and expertise. asia is a diverse mix of economies. they are at different stages of development, with different financing needs and different regulatory and governance structures, not to mention different cultural norms. to operate a successful regional business franchise, finance professionals will need a deep understanding of these differences and know how to navigate the different terrain. take for example, a corporate banker, who may be advising the treasurer of a singaporebased multi - national corporation with operations in the region. each jurisdiction may have different rules and regulations that could impact the cash management and credit needs of this client. the banker must therefore have deep regional knowledge and strong networks to deliver solutions for this client. gaining exposure to asian markets will therefore put him in a better position to assume greater responsibilities over time. our ecosystem to develop human capital mas wants to see more of our finance professionals in singapore build up these three dimensions of expertise. and there is a strong ecosystem in singapore to nurture this process. first, mas and the institute of banking and finance have established a set of industry standards for asian financial practitioners, through the financial industry competency standards ( fics ). • this offers finance professionals a clear roadmap for building