high that its demand for resources can be expected to be correspondingly higher. the question that i am concerned with is whether regional savings will be adequate for meeting this demand as they have been in the last decade. will the globalising world face the opposite of a savings glut or investment drought? with the kind of urbanisation pattern that i have outlined for asia in the next 30 years, and the associated demand for enhanced resources for infrastructure investment, it is likely that the demand for external savings will re - merge. if we add the possible emergence of similar demand from africa, the likelihood is that we will revert to the traditional pattern of financial capital moving in the right direction, from the rich to less rich countries in asia and also in africa. if raghuram rajan repeats his correlation exercises in 2030 he might emerge a happier man. this will, however, coincide with the adverse demographics of europe and japan contributing to contraction of world savings. various questions arise. will we then see a hardening of world real interest rates? what will be the new challenges that we, as monetary authorities, will face in the years to come? how soon will this reversal take place in global imbalances? will they be gradual or sudden? if this scenario is correct, the commodity price boom that paul collier talked about will continue for some time ; in which case additional demand will arise from africa as well. we should, therefore, expect an acceleration of cross border global capital flows, with the usual implication for exchange rate and monetary management in the recipient countries. another interesting comment on off - shoring that the venables and grossman papers have talked about is off - shoring low skill activities. what is intriguing is that great investment is taking place in human resources in asia as well : tokyo has 113 universities, beijing has 59, and hong kong and singapore are becoming educational centres. us and european educational institutions are competing with each other to off - shore their activities in asia. so where will this off - shoring stop? contemporary monetary puzzles much of discussion in this symposium has centered around the rearrangement of economic thinking to take account of the efforts of globalisation and the new economic geography. what have the implications been for central bankers? rogoff has shown how monetary stability has been accompanied by price stability and output stability, but not asset price and exchange rate stability. he goes on to say that exchange rates do not really reflect fundamentals and act more like asset prices. how

##reast of industry developments, enhance their supervisory techniques, promote consistent standards and strengthen risk management practices to address emerging challenges. 27. capacity building through recruiting adequate number of quality staff and equipping them with the right skills and tools is an ongoing process that empowers supervisors to fulfil their roles in maintaining the stability and soundness of the banking sector. conclusion let me now conclude. 28. by staying abreast of technological advancements, monitoring the evolving risk landscape, keeping pace with regulatory developments, building necessary capacities and skills and adopting latest analytical tools, supervisors can more effectively fulfil their role in maintaining financial stability, protecting consumers, and fostering a resilient banking sector. learning from past experiences and collaborating across jurisdictions can help better navigate the challenges ahead. this can contribute to building a strong banking sector that supports sustainable economic growth in the asia - pacific region. 4 / 5 bis - central bankers'speeches the conference provides this platform and i believe that it shall prove to be very useful for all the participants. my best wishes to all of you. thank you! 5 / 5 bis - central bankers'speeches