from carrying out certain types of investment banking activities if they wished to continue to rely on deposit funding. in a similar vein, in the united kingdom, the adoption of the recommendations by the independent commission on banking mandates banking groups to establish a separate subsidiary for their retail activities, and it prohibits the subsidiary from undertaking other businesses and risks. solutions to these challenges are far from straightforward. while these and other reforms by the basel committee and the financial stability board are expected to have far reaching implications for the landscape of the financial system as we know it today, they have yet to provide answers to many of the key questions that policymakers and the financial industry need to address in the pursuit of effective functioning and sound financial systems as we progress forward into the future. since the global financial crisis, significant attention has been directed at evolving an effective macro - prudential policy framework, which can serve to rein in excesses and strengthen the nexus between finance and the real economy. the concept of macroprudential policies is hardly new and can be traced back to as early as the late 1970s, in reference to the macroeconomic and financial stability implications from the rapid pace of lending to developing economies3. some emerging markets, including asia, have, since the 1990s, deployed macro - prudential policy instruments to manage imbalances in the financial system and capital flows. following the recent global financial crisis, greater attention is now being focused on the role, scope, instruments and governance arrangements for macro - prudential policy to preserve financial stability. new or strengthened mandates for macro - prudential policies are being established in a growing number of jurisdictions, supported by wide - ranging changes to the legislative framework and institutional structures. used effectively in combination with other policy tools, including micro - prudential measures and monetary and fiscal policy tools, macro - prudential policies have been demonstrated to significantly improve financial stability outcomes. effectively operationalising macro - prudential policy frameworks, however, remains a key challenge. by design, macro - prudential policies are intended to reduce the probability and severity of a future crisis. while further research will deepen our understanding of leading indicators and transmission channels, judgments will continue to have a key role. history has shown that political economic considerations have, at times, had an effect on the willingness of policymakers to act. despite the high costs of crisis on the financial system on the economy and on the society, there is still an inherent bias towards inaction. this underscores

communications. increasingly, mobile devices are the preferred channel for consumers to make payments conveniently from anywhere and at any time. the second is the ability to process payments and move funds instantaneously around the clock. towards this end, bank negara malaysia ’ s wholly - owned subsidiary myclear has initiated a multi - year program to modernise malaysia ’ s payment infrastructure. the key thrust of this plan is to develop a new real - time retail payments platform that will serve as both a catalyst and enabler for innovative payments in malaysia. this should meet the needs of consumers and businesses who increasingly expect payments on - demand where funds are available to the recipient immediately. in this regard, i would like to call upon the financial industry to jointly work with myclear in the development of such new real - time retail payments platform. conclusion payment and settlement systems are the foundation that underpin the financial market infrastructure and serve as a catalyst for economic growth. hence, efforts to promote the bis central bankers ’ speeches resilience, interoperability and competition of such systems are of utmost importance. this has been and will continue to form the key thrust in bank negara malaysia ’ s policy work in delivering our mandate of fostering safe, efficient and reliable payment systems. there are immense opportunities and new sources of growth including expanding financial accessibility to the underserved that is made possible from greater standardization and interoperability of the payment systems, as well as, innovation. hence, in today ’ s rapidly evolving and highly competitive environment, the financial community should capitalise on such enabling environment, and collaborate through standardisation and interoperability, to lower costs, foster innovation and deliver better value proposition and choices to their customers. bis central bankers ’ speeches