favored politically. going forward, i view that there is a need for international institution that oversees all finance - related conducts to ensure strict compliance of rule, implementation of ethical codes and avoid double standard across nations. lastly, continuous and collective reforms are vital. crisis is a recurring phenomenon and no lessons from previous crisis will ever fully prevent the next one. but through the process of reform after each crisis, the market grows and becomes more efficient. crises provide a window or “ political feasibility ” to undertake needed structural changes that international labor organization ( ilo ). bis central bankers ’ speeches may be hard to sell to the public in normal circumstances, so one should not waste a good crisis. i am pleased to see numerous improvements in key areas of finance and supervision such as the use of macroprudential measures to complement traditional monetary policy tools. it is also more acceptable to require banks to provision in good times against losses in bad times, for after all most bad loans are made in good times. in addition to structural reforms, change in “ mindset ” is probably the most important. in order to keep up with the dynamic global environment, we may need to challenge and correct some of our old beliefs. let me name a few – 1 ) sovereign is no longer risk - free, 2 ) we are taught to value economies of scale but are now confronted with the too - big - to - exist problem and 3 ) banks should no longer be only international in life but also in death as crises are more and more systemic given the growing interconnectedness. spillover and contagion were witnessed in 1997 where the turbulence spread from thailand to south east asia and to russia, china and brazil, as it was a decade later in 2007 where the crisis widened from us and eu to the rest of the world. imagine the pace of the spread of crisis in the next 10 years in 2017 – where crises would grow in size and speed beyond the management capacity of a single nation, real collective action is called for. most importantly, we have to be forward - looking and well prepared. as crises are prone to occur more frequently with larger spillover, reform must be continued during normal times. it is imperative that the public is on board and support the reform effort to raise the competitiveness of the country, and minimize vulnerabilities or imbalances that may be triggered by external factors through no fault of their own. ladies and gentlemen, let me conclude by offering an observation that in 2002, five years

after 1997 crisis, asian economies had fully recovered, in particular, thailand was able to repay the imf package some two years ahead of the schedule. today, four years after the lehman crisis, more work remains ahead of us. at this critical juncture, it might come down to policy action, which entails clarity, commitment and credibility, to progress onwards. indeed, there are always benefits from looking back to the do ’ s and don ’ ts in the rear mirror but it is of greater importance to be looking forward in the windshield. as such, for asia and other non - crisis country, in this era of growing uncertainties, complacency is a luxury we can ill afford. thank you. bis central bankers ’ speeches