have spent much of my remarks talking about the challenges of financial integration. it is important, however, not to lose sight of the bigger picture. the benefits of being part of an open and integrated global economic and financial system are immense and should be embraced. the question is not whether to be integrated, but how to best do it in a way bis central bankers ’ speeches that avoids a drift towards financial protectionism. success on this front ensures that the legacy we leave for the generations behind us is one of opportunities rather than problems. in choosing the appropriate strategies, a balance has to be struck between boldness and humility. we should be bold in our willingness to question conventional wisdom and try new initiatives. but in a constantly evolving global economy, we must remain humble about our understanding of how things work and be acutely aware of the limits of our knowledge. as albert einstein once said “ the difference between genius and stupidity is that genius has its limits. ” at an institution for learning such as this, i think it is fitting to end with that quote. thank you for your attention. bis central bankers ’ speeches

zeti akhtar aziz : greater financial integration and financial stability opening remarks by dr zeti akhtar aziz, governor of the central bank of malaysia, at the seacen 30th anniversary conference “ greater financial integration and financial stability ”, kuala lumpur, 20 october 2013. * * * bank negara malaysia is honoured to welcome you to the seacen 30th anniversary conference on “ greater financial integration and financial stability ”. we are especially honoured by the presence of governors and senior officials who are here today, despite the pressing demands on our institutions during this period of persistent uncertainties in the global financial and economic environment. we continue to face challenging and often testing times. over the recent five years, we have been confronted with recurring episodes of turbulence, followed by phases of transitory recoveries. we have seen, and have been part of, extensive collaborative measures and reforms pursued at both the regional and global level. yet, the calm after the storm continues to evade us. the seacen and asian economies have seen significant structural adjustments and wide ranging financial reforms in this decade. during this period intra - regional trade activity has rapidly increased, signifying the deepening of economic ties within the region. intra - regional trade in east asia has expanded from an average of 44 % of total trade in 1995, to 50 % in 2012. intra - regional investment activity has also been on an uptrend. asia ’ s young and increasingly urban and increasingly more affluent population, supported with policy initiatives to strengthen social safety nets – including for healthcare and retirement – will further enhance domestic demand in the region. this will further unlock our trade and growth potential. our diversity also continues to be an important source of strength for the region. the complementarities between the economies in the region provide significant opportunities for greater shared prosperity and mutually reinforcing regional growth. the progressive liberalization of the domestic financial sectors, the development of domestic capital markets and the integration of payments and settlement systems have opened up new channels for regional financial institutions and markets to intermediate funds across borders. these developments have facilitated the recycling of surplus funds from the region for economic development in the region, while also enabling greater diversification of risks. the lessons drawn from the asian financial crisis more than 15 years ago also continue to shape our financial sector reforms, liberalization and economic and financial integration in the region. the focus is on developing a financial sector that serves the needs of the real economy, and which is built on solid foundations of sound risk management and strong financial