, a media campaign in all parts of the world against terrorism is also very important. that is something that the world has clearly recognized today, and internationally, we see a greater coordination in the media in dealing with terrorism. the other important front in this war against terror is the stopping of financing for terrorism. without finance, terrorism cannot progress. so, steps taken by countries to ensure that the funding lines to terrorism and money laundering are cut off, that terror financing transactions are interrupted or stopped, and that there is worldwide co - operation to track down persons who are suspected of being involved in terror financing in whatever way, is of vital importance. just take a small example. if at the end of the month, you do not receive your salary, you will find it difficult to comfortably progress with your next month ’ s activities. in the same way, if we can stop the funds going to terrorist activities, that will put a dampener on their activities. it is very simple to understand. therefore, not only should we deal with terrorists on a military basis, but we should disrupt their progress by cutting off and interrupting their funding lines. by doing so, we complicate their agenda. in order to do so, and to continue to do so, we have to equip ourselves. the judiciary, the law enforcement agencies, the regulators, the media, the bankers, the prosecutors, all of these groups, have to equip themselves with whatever it takes, to meet with this challenge. we have to learn from each other. we have already learnt many lessons during our own activities in this field. but, it is important that we share such knowledge and experience with others as well. if we do so, perhaps others too, could replicate some of those efforts which have been proved to be successful. hence, there is an urgent need for us to create the awareness. we also have to enact the necessary laws. sri lanka has already passed the necessary laws for this purpose : so have many other countries. that is very important. because, without the legal framework and the legal backing, our efforts will not succeed. then, we have to build our own capacities. we have to have people who are trained and competent to deal with these challenges. because, unless you have the competence, and the ability to recognize certain disguised transactions, the ability to see through the clever facades, and the ability to anticipate the next move of the terror financiers or money launder

during the previous financial crisis, the proper functioning of mortgage markets is necessary for monetary policy to support the economy. unfortunately, the problems in mortgage finance in this crisis were broader than just the mbs markets. this crisis period has also revealed a number of new — or, in some cases, renewed — vulnerabilities related to lending and loan servicing by nonbank mortgage companies, which i will refer to from here on as mortgage companies. these vulnerabilities were not entirely a surprise to me. when i served as a banker and, subsequently, as the state bank commissioner in kansas, i saw firsthand the increasing share of mortgage companies in mortgage origination and servicing as well as some of the weaknesses in the mortgage company business model. and in my role as a board member with a focus on community banks, i frequently hear about the issues that have caused some regional and community bankers to pull back from originating and servicing mortgages. i view this as a significant problem, because i believe firmly that a healthy financial system must have a place for institutions of many different types and sizes that are able to serve the varying needs of different customers. i will begin today by describing the evolving role of mortgage companies in mortgage markets and the risks to financial stability that activity entails. i will then focus on developments in mortgage markets during the covid - 19 pandemic and discuss how actions by the federal reserve and the other parts of the government helped stabilize financial markets and prevent more severe damage to the economy. finally, i will explain how vulnerabilities associated with mortgage companies could pose risks in the - 3future, and i will review ongoing work across the regulatory agencies to monitor and address these vulnerabilities. i will end by enlisting your help. figuring out how to achieve a balanced mortgage system — one that delivers the best outcomes for consumers while being sufficiently resilient — is a highly complex task that could benefit from the insights of those of you here today. the role of nonbank financial institutions in mortgage markets in the 1980s and 1990s, the share of mortgages originated by mortgage companies increased considerably, as expanded securitization of mortgages allowed mortgage companies, which lack the balance sheet capacity of banks, to compete with banks in the mortgage market. the role of mortgage companies increased further in the 2000s with the growth of the private - label mortgage market, where mbs sponsors are private firms without government support. but the last financial crisis and the prolonged housing slump that followed