risk - based capital, leverage, liquidity, single - counterparty credit limits, and margin requirements for over - the - counter derivatives. we have also worked with the financial stability board ( fsb ) to reach global agreements on resolution regimes for systemic financial firms and on a set of shadow banking regulatory reforms. domestically, we have completed many important measures. we approved final rules implementing the basel iii capital framework, which help ensure that u. s. banking organizations maintain strong capital positions and are able to continue lending to creditworthy households and businesses even during economic downturns. we implemented the dodd - frank act ’ s stress testing requirements, which are complemented by the federal reserve ’ s annual comprehensive capital analysis and review. together, these supervisory exercises provide a forward - looking assessment of the capital adequacy of the largest u. s. banking firms. pursuant to section 165 of the dodd - frank act, we established a set of enhanced standards for large u. s. banking organizations to help increase the resiliency of their operations and thus promote financial stability. in addition, the federal reserve implemented a rule requiring foreign banking organizations with a significant u. s. presence bis central bankers ’ speeches to establish u. s. intermediate holding companies over their u. s. subsidiaries and subjecting such companies to substantially the same prudential standards applicable to u. s. bank holding companies. we finalized the volcker rule to implement section 619 of the doddfrank act and prohibit banking organizations from engaging in short - term proprietary trading of certain securities and derivatives. these and other measures have already created a financial regulatory architecture that is much stronger and much more focused on financial stability than the framework in existence at the advent of the financial crisis. more recently, the federal reserve, often in tandem with some or all of the other agencies represented at this hearing, has made progress on a number of other important regulatory reforms. i will discuss those steps in more detail. liquidity rules for large banking firms last week, the federal reserve and the other u. s. banking agencies approved a final rule, consistent with the enhanced prudential standards requirements in section 165 of the doddfrank act, which implements the first broadly applicable quantitative liquidity requirement for u. s. banking firms. liquidity standards for large u. s. banking firms are a key contributor to financial stability, as they work in concert with capital standards, stress testing, and other enhanced prudential standards to help ensure that

the banking industry is about rm2. 4 billion annually. this is sheer wastage when a cheaper alternative is readily available. there is substantial room for our banks to strengthen their operational efficiency through rationalization of business model and internal processes by emphasizing the use of epayments, instead of the more manually - intensive paper - based payment methods. this would enable banks to achieve a lower cost - income ratio, thus enhancing productivity and competitiveness. for this to happen, it is critical that, banks should upgrade their management information system ( mis ) to fully capture the cost of different payment methods and identify areas with potential for greater operational efficiency. in addition, banks should foster better coordination between their respective revenue and cost centres to achieve optimal financial performance. this should be complemented with an incentive structure within each bank that not only rewards revenue generation but also cost reduction. payment system infrastructure providers basic payment infrastructure should be viewed as a form of ‘ utility services ’ such as electricity, telephone and broadband lines, where it is regarded as a key enabler for innovation. hence, access to payment infrastructure should be made as open and as affordable as possible. the bigger the network of a payment infrastructure, the more value it can bring to its participants in terms of economies of scale and multiplier network effects. payment system infrastructure development should be shared and not be regarded as a competitive tool as investments in this space is expensive and continuous. therefore, payment system infrastructure providers such as meps and myclear should collaborate more effectively to avoid duplication and wastage. in addition, meps and myclear should also collaborate and put in place common payment system infrastructure that would benefit all stakeholders. the recent collaboration between meps and myclear under the malaysian chip card specification ( mccs ) initiative to migrate the domestic debit card to the europay - mastercard - visa ( emv ) standard and contactless feature is a step in the right direction. bis central bankers ’ speeches moving forward, meps and myclear should jointly identify areas for strategic cooperation, with a clear line of sight to the future, to ensure that payment system infrastructure in malaysia continue to keep pace with innovation and meet user needs. merchants and consumers with increased transparency in payment services brought about by the various regulatory and industry measures, merchants and consumers alike should leverage on expanded information disclosure to get the best deals that suit their requirements. a smart consumer will drive competition and reduce costs over the long run processing payments and account reconciliation manually is a