ended march 2013. • this is lower than the s $ 12. 0 billion earned in the previous fy, due primarily to lower interest income as interest rates continued to decline in fy 2012 / 13. bis central bankers ’ speeches but mas recorded an overall loss of s $ 10. 6 billion after taking into account translation effects from an appreciating singapore dollar. • in fy 2012 / 13, the singapore dollar appreciated against all major currencies • in particular, the singapore dollar strengthened 5 % against the euro, 6 % against the sterling, and 14 % against the yen during fy. • it also appreciated against traditionally strong currencies like the aussie dollar and the canadian dollar. in short, we made good investment returns, but when measured in singapore dollars, these gains more than offset by strength of the currency. • this is an issue of reporting currency. if we had reported our profit and loss in international currency, it would show healthy profit. it is important to note that the international purchasing power of our reserves is unaffected by the strength of the singapore dollar. • our foreign reserves serve two key purposes during a crisis : they finance our imports from rest of world, and they help to safeguard the value of our currency. • on both fronts, it is the foreign currency value of reserves that matters. • we report our profit and loss in singapore dollar only because it is international convention for central banks to report in national currencies. banking system remains sound, but concerns over rising household debt now i will touch on financial stability, asset prices, and leverage. a key focus of mas in the last two years is managing risks posed by extremely loose global monetary conditions. • short - term interest rates at or close to zero bound globally. • this has in turn spurred strong demand for credit in asia and banks flushed with liquidity are more than willing to lend. • there is a substantial flow of credit to asset markets, especially in real estate. • accelerations in property prices and build - up in household leverage are seen throughout asia. the combination of low interest rates, growing leverage, and surging property prices poses significant risks to financial stability – hence mas ’ concern. singapore ’ s credit - to - gdp ratio has risen from 200 % to 270 % over last three years. mas has been monitoring this very closely but credit growth, in and of itself, is not a cause for major concern. • growth in total credit reflects singapore ’ s growing role as

of trading opportunities and reach economies of scale faster. • this is what the business sans borders initiative by mas and the infocomm development authority is seeking to do. • bsb is an open connector of platforms ( a “ meta - hub ” ) which helps address three challenges faced by smes – opaque pricing, complex supply chains, and lack of access to digital solutions. 2 / 3 bis central bankers'speeches • this is a cross - border platform, connecting infrastructure across countries. fundamentally, finance needs to support the way people live their lives and businesses go about their business. • embedding innovation and digital finance in people ’ s lives is the only way to achieve sustained and meaningful financial inclusion. • as countries, we must learn from one other, partner in innovative projects, and manage risks collaboratively. • and we should do so with the consumer right at the centre of our thinking. 3 / 3 bis central bankers'speeches