the central bank, but where there are other regulatory agencies for other financial sub - sectors. in jamaica, the central bank continues to regulate and supervise the commercial banks and non - banks, but the rest of the financial system is supervised by a separate entity, the financial services commission ( fsc ). our government has indicated that bringing the insurance industry and pension funds within the regulatory ambit of the central bank is a first phase and that over the longer term consideration is to be given to a super regulatory agency which will supervise all financial services ( credit unions, the securities industry etc. ). what is the rationale for a single regulatory entity? ( i ) the increasing complexity of the financial services industry, as evidenced by the emergence of financial conglomerates, requires a strong institution to supervise the conglomerate as a whole, rather than a series of agencies supervising parts of the complex. ( ii ) many products and services offered to consumers by the insurance industry ( or the securities industry, for that matter ) are becoming difficult to distinguish from those offered by deposit taking institutions. accordingly, integrated supervision avoids the different regulatory treatment of similar products : it eliminates gaps in consumer protection and reduces the scope for regulatory arbitrage. ( iii ) trinidad and tobago, like most other developing countries is unfortunately short on human capital. the creation of a single agency avoids the problem of spreading our limited human resources too thinly among different specialized agencies. in addition to these reasons, the central bank sees integrated supervision as a way of facilitating the task of maintaining the soundness of the financial system. recent examples worldwide have shown that weaknesses or breakdowns in the financial system, occurring at various points in the chain can lead to widespread economic crisis. we don ’ t have to look too far : we have as ample evidence the case of jamaica, where the collapse of the financial system in the mid 1990 ’ s is estimated to have cost taxpayers some 10 % of gdp. in discussing some of the factors leading up to the financial crisis in jamaica, the chairman of finsac ( the government agency charged with resolving the crisis ) pointed to the country ’ s indigenous financial sector entrepreneurs whom he thought were, ( and i quote ) : · too eager to get rich ; · too bullish in risking other people ’ s money ; · too eager to start at the top ; · too competitive with one another in demonstrating the trappings of success, reflected in the rush to form larger and more complex groups ; and · too prone to bend prude

asian central banks have been, and continue to be, explored and developed. the bis has made important contributions in this area, with its research providing useful information and insight for policymakers in the region. a : avenue for meetings – to promote discussion and policy analysis among central banks, the asian office has hosted and supported numerous meetings and events in the region, collaborating with other organisations such as the financial stability institute, emeap and seanza. r : reserves management – the asian office plays a vital role in the management and administration of asian bond funds 1 and 2 that aim to broaden and deepen regional and domestic bond markets. the dealing room of the asian office also provides asian central banks with ready access to bis banking services, helping facilitate their liquidity and portfolio management of foreign reserves. over these 10 years, i have seen the asian office play a significant role in helping to strengthen financial sectors, develop financial infrastructure, and promote stability and financial integration in this region. and since its establishment, the hkma has stepped up its participation in the bis'wide range of activities, sometimes co - hosting seminars and meetings, fostering an even closer relationship between us. let me take this opportunity to acknowledge with thanks the great work of the bis management and its staff, who have made the asian office a success. in particular, i would like to thank bob mccauley who has contributed significantly to the achievements of the asian office in the past decade. the accomplishments of the bis in asia over the past 10 years call for celebration. with this in mind, let's celebrate these achievements and anticipate even greater endeavours to come. i propose a toast and wish the asian office continued success for the next 10 years and beyond. thank you.