banking sector is one of the key drivers in the financial sector. this is further motivated by the approach of the ‘ asean way ’, which is premised on the region ’ s belief and recognition of strength in diversity. important regional agreements such as the asean banking integration framework have encapsulated the principles of inclusiveness, attainment of mutual benefits and individual country readiness in supporting the regionalisation of asean banks. however, an important point that should not be forgotten is that the financial sector encompasses a wider scope than just banks. in fact, policymakers in asean have been successful in enlarging the borders of our financial markets by developing more diverse sources of funding for the economy. this is best reflected in the building of deeper and more liquid bond markets arising from the experience of the 1997 asian financial crisis. we are also seeing a shift in the financial landscape through the usage of technology, something that i will elaborate more on later. thus, the term bankers without borders, should perhaps, be expanded to be finance without borders. yet, despite the positive outcomes from these and the continued strong need for openness, the conviction for globalisation and international banking seems to be waning. for one, post the global financial crisis, we have seen the rationalisation of operations by many international banks. 1 / 3 bis central bankers'speeches we read regularly on the prospects of trade protectionism, how globalisation has created widening inequality and how globalisation is like a train running out of control. no doubt, a key driver of the 2007 / 2008 financial crisis was indeed financial liberalisation going too far. interestingly, some, including economists at the bank of england have also begin to consider the theory of “ peak finance ” – that global finance has peaked and financial de - globalisation has begun, while others at the bis have argued otherwise. international banking and finance – a new model for a new era while this debate will surely continue to unfold over the coming years, perhaps the more pertinent question is how we can evolve the model of international banking such that it becomes more desirable and beneficial for the needs of the future. it is worth considering a new model – one that is inherently more sustainable and inclusive. if i may postulate, the starting point is perhaps an honest appraisal that international banking ought to be much more than just a commercial decision. beyond considerations of revenue, margins and returns, international banking should fundamentally be more attuned to and invested in the developmental journey of the

quick money could be earned in the so - called new economy became the conventional wisdom. from the recent years ’ experience i can identify some important and interesting issues. although time does not allow me to expand on them, allow me nevertheless to mention some briefly. what can be done to make the stock market function better? what can be done to provide more support in the future for long - term saving by households? how could more education and knowledge be provided so that the inexperienced investor becomes experienced and well - educated instead. i ’ m sure that shareholders associations all over the world have an important role to play in this respect. further, it goes without saying that prompt, up - to - date, correct and relevant information is crucial. however, we must remember that more information is not the same as better information. quality is not the same as quantity. the inexperienced investor must be helped to interpret the information and pick out what matters most. an important role could be played by independent analysts, not to mention media. there have to be agents in society that can see through and criticise corporate managements that are unduly optimistic or provide information selectively. the argument for this is that international studies indicate that in the second half of the 1990s firms, banks and analysts had incentives to talk inexperienced people into investing in new enterprises on grounds that were not entirely sound. many new technology companies were not generating a profit and had to rely instead on paying for wages and equipment by issuing shares. for this to be feasible, stock market valuation needs to be high. in this sense there were incentives for managements to trim reports and statements about their firm ’ s future profits. at the same time, analysts and investment banks, with potential earnings from launching share issues, lacked incentives to take a critical look at these reports, so inexperienced investors did not get the assistance and support they needed. in order to reduce the risk of financial market imbalances, it is important that we have a well thought - out legislative, regulatory and supervisory infrastructure that functions properly and follows changes in the rest of the world. this is a never - ending task that requires the participation of all concerned. today, households face what are sometimes very difficult risk - management decisions that were not called for or even possible before. many people still lack the relevant knowledge for this and it may be asked whether people in general can be expected to have such knowledge in the future. everyone cannot be a specialist in risk management and financial theory. therefore, i think