system. going forward, the pace of asian regional economic and financial integration will gain momentum, driven by structural factors, by the conscious policy to put in place the enabling environment and by the benefits derived that are mutually reinforcing. the evidence in this decade has demonstrated that a more integrated and cohesive asia contributes towards more balanced global growth, while a more resilient asia contributes to greater global financial stability. while a more connected world in this new phase of globalisation will bring new vulnerabilities, it also brings with it the promise of new opportunities, new relationships and partnerships in the world economy, and thus, new prospects for a greater shared prosperity.

management responses to misconduct or non - compliance. the rightcontextual setting can exert a powerful influence on individual behaviour. we believe this begins with setting and clearly communicating expectations of desired behaviour. without clarity on what is acceptable in the first place, it would not be possible to encourage, much less enforce, these expectations. the fspb serves an important role in this regard through its work in defining and developing codes of behaviour for financial institutions. given the stronger focus of financial regulators on conduct and culture, such professional codes will matter greatly going forward as an important complement to regulatory standards. the fspb is well placed to lead and support initiatives to establish standards of conduct for the financial industry. its standards not only serve as useful frameworks for financial institutions and professional bodies to develop specific guidance for their own employees and members ; they also serve to embody the industry ’ s collective commitment to socially responsible values and 1 / 3 bis central bankers'speeches ethics. for example, i noted with interest that the professional code being launched today commits to dealing with counterparties, including suppliers and agents that “ subscribe to sound ethical principles ”. matters such as the environmental footprint or human rights record of third party providers are not typical obligations currently found in regulatory standards, yet, these are matters of great importance. they are a reflection of the values of the industry, and they matter to many conscientious consumers in this age of increasingly accessible information. given the central role of financial services in any economy, these are issues likely to move from the periphery to increasingly important business considerations. at the global level, we are already seeing greater attention given to sustainable and responsible finance. in many cases, it will require the industry to draw on experience beyond the traditional core competencies of most financial services providers. the industry, through fsbp, can demonstrate much needed business leadership in addressing broader ethical questions that will increasingly confront us as a society and as global citizens. apart from what ends up in written codes, there is also important value in simply having frank conversations about shared ethical challenges. in the united kingdom, senior bankers got together to discuss ways to reform organisational culture following the widespread ppi misselling scandals, but some would consider this “ too little too late ”. we need to bring such discussions forward and actively encourage a process that would allow the industry to get in front of emerging issues around professional conduct and ethics. these include examining issues like how institutions might go about gaining a pulse on culture at various