##ative importance of financial inclusion, the central bank of malaysia act 2009 states that promoting a sound, progressive and inclusive financial system as one of the primary functions of the bank. this has provided a clear mandate and legislative power for the bank to advance the financial inclusion agenda. the financial inclusion mandate of the bank is further reinforced by the financial sector blueprint 2011 – 2020, which charts the future development of the malaysian financial system. it details the bank ’ s holistic approach toward achieving greater financial inclusion. an important evolution in the advancement of our financial inclusion strategies is the increasing focus on data and measurement. success can only be celebrated if it is proven by visible developments that is felt on the ground. hence, one of the cornerstone recommendations under the financial sector blueprint is the development of a financial inclusion index, a framework to measure accessibility to financial services as well as its bis central bankers ’ speeches usage and quality. our performance on this agenda has therefore been measured, consistent with our drive for accountability and excellence. further policy initiatives have included the introduction of agent banking which has enabled 99 % of malaysians today to enjoy convenient access to safe, reliable and affordable financial services. international efforts to enhance financial inclusion measurement internationally, there is an emerging common understanding that measurement is an essential policy tool for implementation. in this regard, the alliance for financial inclusion, a network of central banks and financial regulators from 96 countries, has provided an important platform in advancing the global agenda of financial inclusion measurement. with the sasana accord, which was agreed upon in 2013 during the global policy forum held here in sasana kijang, afi members underscored the importance of measuring the progress of financial inclusion using a common set of measurable indicators. this accord has formulated the measuring tools for the monitoring of key performance indicators ( kpis ) that has assisted policy makers in implementing and refining strategies to assist the underserved. immense progress has also been made in gathering accurate and timely data for financial inclusion kpis. traditionally, financial inclusion data has been scarce as they have depended on national user surveys. in this regard, the global findex has made a very significant contribution to financial inclusion policymakers and practitioners, as it is a database of more than 150, 000 survey responses from more than 140 countries across the world. with the data from the global findex, which is updated every 3 years, we are now able to compare in a consistent manner the financial inclusion performance across countries and analyse trends over time. the availability of country

: “ there is not enough recognition in the market of the power of the fixed - rate full - allotment regime, meaning that the amount of liquidity extension by the central bank, or the size of the balance sheet of the central bank can be x or y at a point in time, but there is still a lot of flexibility to cope with any liquidity shocks. and we ’ ve seen that working in december. we saw a substitution away from the ltro and towards the mro. the power of that instrument is sometimes not appreciated by the market. ” “ we ’ ve always had a policy to provide some term liquidity ; we have the 3 - month ltro, for instance, which is still there. however, i see a lot of difference between ensuring the stability of the money market, which is part of monetary policy, and helping banks to meet regulatory requirements when it comes to liquidity, which is not the role of monetary policy. ” on possible further liquidity operations : “ it ’ s our duty to make sure that the money market is well functioning, especially in terms of possible liquidity bottle necks and volatility of short term rates. and we have a duty to ensure bis central bankers ’ speeches that the level of money market rates remains appropriate to the situation of the economy. this is something that we monitor. ” “ if the question is, what happens when the 3 - year ltro is eventually paid back in january 2015, it ’ s an open question whether the standard liquidity facility that we have – 1 - week mro, 3 - month ltro – will be enough to roll over that liquidity, or whether we need something more. that ’ s something that we ’ ll decide in the course of 2014. ” “ it will depend on how the money market behaves. it may be the case that the standing facilities are enough to ensure an appropriate level of liquidity ; if this is not the case, then we would act. there ’ s no question. ” on conditional liquidity operations : “ it has been done in other jurisdictions, but they are very different from us – so i wouldn ’ t draw direct lessons from what has been done, say, in the u. k. for us, because the market is so different. the nature of the monetary policy transmission issues that we are facing here are very different from the u. k. to take an obvious example, the mortgage market is not quite as important here