, market monitoring and surveillance tools have been augmented to spotlight on market - based finance ( or shadow banking ), allowing better visibility on hitherto darker corridors of the global finance house. 5. there are many more examples of regulatory reforms and initiatives. now, after years of effort, the obvious questions will be whether we have done enough, will all the features and installations in the enhanced house of global finance come together in an effective and coherent manner, or have we overdone the repairs at a high cost to the occupants? 1 / 3 bis central bankers'speeches at the crossroads 6. allow me to offer some perspectives to this set of questions. liveability : balancing between resilience and growth 7. just as houses must not only be safe but also functional, so too must the financial system be able to support the activities of its participants. the reforms are set out to strengthen the safety of the system but not regardless of economic cost, or to impede the ability of market participants to function properly. we can always build a house with many more pillars, fences, gates and other defences that would assure that it can never be at risk of collapse, but we also need to consider its liveability. 8. i can assure you that it is not lost on global regulators that the reforms that we have embarked on in the past decade are not ends in themselves. the key is to strengthen the foundations of the global financial system to better assure ongoing resilience and steady development of the sector. therefore, the new regulatory requirements should take into account the financial sector ’ s linkages to and support of the broader economy. 9. while most policy - related reviews of the reforms have been done, there are ongoing impact studies to assess how different parts of the world as well as different stakeholders are affected ; and whether there are unintended effects. 10. take central clearing requirements for example. by mandating more otc derivatives to be centrally cleared on ccps ( central counterparties ), market participants benefit from netting of exposures and reduction of credit risks, ultimately reducing systemic risks. however, without ensuring sufficient access to ccps before implementing such a mandate, some market participants may find themselves scrambling to sign up with the fewer clearing members who have access to the ccps. some may even find the new economics of clearing prohibitive. such factors should therefore be carefully considered so that in the desire to address possible vulnerabilities, and to cover all bases, perfection does not become the

from structural changes in the singapore economy. in these areas, there is much scope for further study including joint collaboration between academia and policymakers. first, in robust statistical techniques to identify demand and supply shocks in a dynamic economy. second, in formulating robust monetary policy rules in the context of ongoing supply - side changes in the economy. and, finally, in developing early warning indicators for different types of inflationary pressures, and assessing the efficacy of various macroprudential instruments. partnerships with academia can also play a key role in public insights and understanding of structural issues, challenges and the policy trade - offs. in this regard, i encourage skbi to be at the forefront of applied financial and economic research that can help shape policy thinking. an american opera soprano and actress turned self - help guru, dorothy sarnoff, once said : “ make sure you finished speaking before your audience finished listening ”. this morning, i am sure many of you are looking forward to the keynote address by sir james mirrlees as much as i am. so allow me now to end my opening address here. thank you for your kind attention. bis central bankers ’ speeches