. collaborative strategies to deliver solutions on telco and e - commerce platforms are similarly redefining new business models. for donors, the adoption of performance - based rewards should be strongly encouraged to focus on microfinance institutions to effectively serve their mandate. the reward system should take into account outreach, financial performance and impact on wellbeing. another important point is that, regulators and supervisors should ensure regulatory framework should be proportionate in balancing innovation, inclusion and stability. conclusion all of us have an important role to play in confronting the stark reality that the socio - economic dividends of a global wealth and growth need to be cascaded to all. the vulnerable segment cannot afford to wait for trickle - down growth. as policymakers, we should be concerned with effective financial intermediation and sustainable growth. we are duty - bound to make sure that the fruits of economic prosperity are more equitably shared. as a community, we are morally obligated to provide opportunity and hope for the unserved to improve their livelihood. malaysia ’ s journey will not track exactly the same path as others, nor should we expect it to. but we can all learn something from the footsteps left by others as we move forward. i hope that our collective journeys, as shared in this forum and others like it, will help us harness the full potential of microfinance to build stronger, fairer and more resilient communities. 4 / 4 bis central bankers'speeches

financial market rescue plans and comprehensive deposit guarantees – after some initial stand - alone initiatives such moves were coordinated internationally. while the specifics of these packages may differ, they often share a common feature – their dual approach of promoting liquidity and solvency. the german rescue package is also aimed at these two goals. its core instrument is a financial market stabilisation fund. in order to eliminate liquidity shortages and to support refinancing in the capital markets, the fund is authorised to guarantee, for a suitable fee, newly issued refinancing instruments with maturities of up to 36 months. the fund may also purchase shares or dormant equity holdings of financial institutions in order to recapitalise them. finally, with the option of acquiring problematic assets, it can improve capital ratios too. the authority that administers the fund has been set up at and by the bundesbank, although it is organisationally totally separated from us. it is now fully operational. after initial reluctance, a growing number of banks, both from the private and the public sector, have asked the fund for help. an important feature of the fund is that it is voluntary. private banks, in particular, obviously feared being stigmatised after engaging the fund. however, market reactions have shown that such fears were not justified. another important feature is its package character. using only the guarantee scheme is generally not intended. it is of the essence that banks raise their capital buffers in order to improve their resilience against further downward pressure and to regain confidence. in the current situation, capital adequacy certainly requires more than just compliance with basel rules. internationally competitive levels should be targeted, while it does not matter how this will be achieved, whether by means of private or public funds. making of public funds, however, should be as temporary as possible. having said this, it is obvious that every single public capital injection should not only imply suitable compensation but clear exit procedures as well. while such far - reaching intervention by the state in the economic system was unavoidable, it is not a permanent solution. crisis prevention there has been a lot of talk about the causes of the current crisis and i do not want to delve into this discussion for the moment. in a nutshell, the current crisis is the result of both market failure and regulatory failure. intensive root cause analysis for more than a year has revealed numerous shortcomings in the financial system signalling a comprehensive need for action. as