an average daily trading volume of us $ 119 billion in 2003. the local banks have consolidated from seven into three banks that are larger and stronger, and are building up their regional footprints. in the recent financial system stability assessment of singapore, the imf affirmed the robustness of singapore ’ s financial system and the soundness of our legal, supervisory and institutional framework. we are heartened by these outcomes. but we still need to press on with further reforms and policy adjustments, because the international financial landscape continues to evolve. in this regard, let me highlight two things that mas is doing. revisions to capital adequacy requirements of locally incorporated banks first, mas will be revising the capital adequacy requirements of locally incorporated banks. singapore banks have since 1992 been required to meet a minimum capital adequacy ratio, or car, requirement of 12 %. mas has progressively adjusted this requirement. 1 however, the current mas requirement of 12 % total car of which 8 % must be tier 1 capital still exceeds those in other major financial centres. as part of mas ’ efforts to keep our regulatory framework up - to - date with international best practices, we started to review the car requirements in march last year. i am sure the industry will be pleased to know that mas has completed the review. mas will announce the details at a press conference tomorrow evening. i will touch briefly on the three components of the revisions. ( i ) minimum car the first change is in the minimum car requirements of local banks. mas will lower this minimum car to 10 %, of which at least 7 % should comprise tier 1 capital. this is competitive, taking into account our small and open economy, and the systemic importance of the three local banks. some other countries, including switzerland, similarly have a higher requirement than other developed jurisdictions. this reduction in minimum car does not necessarily translate into a full 2 % lowering of the total car requirements because in parallel with this, mas will amend the rules for computing car, which is the second component of the package of car revisions. ( ii ) changes in car computation rules one noteworthy revision to the computation rules will be a requirement for banks to set aside more capital for significant investments, commensurate with the risks associated with such investments. we had stated in august last year that this would be done, when we extended by two years the grace period for singapore banks to divest non - financial businesses. 2 another significant revision is to allow banks to include 45 %

potentially strongest – for the simple reason that we all need to use payment services to participate in the economy and society. as we proceed along our path towards becoming an e - payments society, the way we live and work will change. • diners will pay for dinner seamlessly and securely with a mobile phone. bis central bankers ’ speeches • parents will send pocket money to their children via an app. • young couples will make the down - payment for their hdb flats on their tablets using fast. • smes will use electronic inventory management platforms to make and receive payments. an e - payments society will be inclusive, innovative, and perhaps, even inspiring. thank you. social costs include costs incurred by banks, infrastructure providers, and merchants in using the payment systems, such as it costs, manpower, etc., but do not include fees paid to other parties in the payments landscape. e. g. merchant acquiring fees paid by merchants to banks would be netted off when considering the entire payment landscape as a whole. bis central bankers ’ speeches