in resisting calls for diluting the commonly agreed standards. it is our common responsibility to ensure that. let us not forget that we, as central banks, must at all times seek to counter such short - term memory of past lessons, for the collective benefit of long - term financial stability and sustainable economic growth. [ future challenges to banking supervision and regulation ] ladies and gentlemen, let me now turn to some remaining challenges from the perspective of developing economies. i want to focus on three specific challenges – ( a ) implementation of expected loss provisioning, ( b ) supervisory safeguards against money laundering and terrorism financing, and ( c ) financial innovation and cyber security. [ a. expected loss provisioning ] one such challenge is the implementation of the expected loss provisioning rules, ifrs9. continued involvement of the basel committee in its implementation is paramount. there is a clear risk that our common efforts to simplify a globally comparable prudential framework can be made somewhat more challenging by an accounting standard that is based on complex internal models. these are exactly the same models which we have opted to backstop amid concerns of arbitrage and perverse incentives. we fully support the concept of forward - looking expected loss provisioning. this is a real improvement over the incurred loss approach which proved to be inadequate - enabling banks to window - dress asset values and consequently their capital. however, the manner in which ifrs9 is implemented creates risks comparable to those observed in the case of internal models recognized in the basel framework. banks have strong incentives to produce outcomes which minimize provisioning needs by relying on complex models where assumptions are not appropriately disclosed. furthermore, supervisors need to be equipped with skills to review such sophisticated models, to ensure that provisioning is adequate and not underestimated. having dealt with internal models in the capital adequacy context, a common challenge remains for accounting models. in the uae, we have opted for a more prescriptive approach to minimize potential imprudent practices by banks. the cbuae has maintained a backstop until sufficient experience is gained, and adequate supervisory comfort has been built in this respect. i therefore welcome the fact the bcbs is devoting more scrutiny to how members conduct supervision, such that we can learn and share good practices. [ b. supervision of anti - money laundering risks ] another remaining challenge for supervisors in both emerging and developing markets is aml supervision. for many years, the global community has stepped up its efforts through the fatf,

arab # fintex symposium – h. e. governor opening remarks honored guests, ladies and gentlemen, good morning, and welcome to this symposium on blockchain and financial inclusion. i think we can all agree that fintech is radically changing the financial sector. rapid advances in digital technology, from artificial intelligence, cryptography to distributed legder technology are already revolutionizing the way financial services are provided. this ranges from the ( 1 ) collection and processing of financial information, ( 2 ) the way saving and borrowing is executed, ( 3 ) the channels for payment of goods, and ( 4 ) money transfers between wallets and accounts, both domestically and across borders. fintech companies are increasingly offering technology - enabled solutions that can better address customer needs and preferences by offering enhanced accessibility, convenience and tailored products. by responding to consumer needs for security, trust, privacy and lower cost services, the fintech industry is poised to affect an array of financial services in a big way. more widely, i believe that fintech has the potential to enhance financial inclusion and unlocking smes and microenterprise ’ access to financing. this is a critical aspect in driving private sector growth and further economic diversification across many countries, including the uae. however, as exciting as these developments are, as a central bank we must always be mindful of our primary goal of maintaining both the safety and soundness of the banking system, and adequate levels of consumer protection. and to that end fintech presents both challenges and opportunities for consumers, financial service providers and regulators alike. the central bank ( cbuae ) is currently in the process of developing a fintech roadmap that aims to build upon the many successes of the uae fintech ecosystem, and to cohesively deploy more balanced regulatory and development initiatives to ensure a healthy and sustainable fintech ecosystem in the long term. this roadmap will be underpinned by a balanced regulatory framework that protects consumers and maintains institutional safety and soundness on the one hand, but does not stifle innovation on the other. at the same time, we must find 1 | page ways to ensure that supporting public and financial infrastructures are put in place within the ecosystem for sustainable innovation to flourish. as a strong advocate towards the uae ’ s innovation and fintech agenda, the cbuae has developed and launched multiple initiatives to help advance applications of technological innovation that will collectively benefit every stakeholder in the uae economy. allow me to name a few :