, but also across the domestic and global economy. an understanding of structural changes driving such interlinkages will become increasingly critical. third, authorities must have a broad policy toolkit for responding to financial stability risks. in recent years, central banks and other authorities responsible for financial stability have had their mandates clarified and powers strengthened for this purpose. this is however by no means assured in many other countries where financial stability authorities continue to face significant limitations in their ability to act, in particular, during a crisis. in malaysia, the enactment of new central bank legislation in 2009 accorded bank negara malaysia with strengthened surveillance powers, along with broad powers to implement measures to avert risks to financial stability. this included powers to resolve non - viable financial institutions and powers to direct specific institutions running systemic risks to take measures to reduce those risks. these powers are in addition to the bank ’ s regulatory and supervisory powers over banks and insurers. having such powers is useful in a crisis. but the ability to operationalise them can be a whole different matter that requires greater attention to forethought and scenario - planning. fourth, authorities need to increase policy agility. every crisis or financial stability issue is different, and each requires a different policy response. the pressure will be on authorities to be able to respond to an infinite variety of problems, which are very rarely understood clearly at the onset, and which often evolve rapidly. going forward, long - standing policy frameworks are likely to come under increasing pressure, simply because they are not built to respond to the intensity and pace of change taking place in the financial system. i believe the solution lies not in building new frameworks, but in strengthening institutional foundations which allow for more nimble frameworks to emerge. such foundations include clear decision authorities, credible analysis to support decision - making, effective policy feedback loops and strong monitoring and accountability frameworks. equally important is the ability to react to unplanned events given the inherent difficulties in predicting market behaviour, especially further out in time. managing financial stability will ultimately require authorities to walk a fine balance. 2 / 4 bis central bankers'speeches the need for surveillance to extend beyond traditional boundaries of financial services can make it harder for authorities to “ stay within their lanes ”. this can be further complicated when the primary responsibility for financial stability is not always clearly defined. more authorities today have acquired expanded powers to access information and respond to financial stability risks. even where there is a single authority charged with the mandate for financial

/ 3 bis central bankers'speeches access and other burdens that result from the actions that have to be taken to protect the integrity of the system and manage risks to consumers. we must avoid this path, which will come at a heavy cost to communities and countries that depend on remittances. we have seen this in recent times with de - risking measures taken by financial institutions, and we still continue to see their effects in parts of the world. we must not expose our system to the same effects. in kota kinabalu, we also hope to build on greenback activities to achieve greater financial inclusion of migrant workers and small businesses. for example, beyond remittances, suitable savings, payment and insurance products can help migrant workers make their earnings go further, facilitate access to goods and services, and provide protection for their families against financial hardship as a result of unforeseen events. for small businesses, electronic remittances can be harnessed to build transactional histories which can help improve their overall creditworthiness. this needs to be supported by a strong focus on financial education. as you can see, we have great expectations for project greenback kota kinabalu. but we are also equally confident of meeting, if not exceeding, those expectations. this is in no small part due to the tremendous cooperation that has already been extended to the project by the city of kota kinabalu, including its police force. i also know for a fact that the msb industry here in kota kinabalu has thrown its full support behind the project, working closely and tirelessly with the malaysian association of money services business, to identify and plan activities for the coming year. and we will leverage on an expanded network of partners, including non - government organisations, other financial service providers and our counterparts in the philippines, to increase the financial inclusion impact of project greenback. with that, let me once again thank yb datuk hajah jainab and the city of kota kinabalu for the opportunity to collaborate on this very important initiative to build inclusive communities where no one is left to suffer in abject poverty. 3 / 3 bis central bankers'speeches