times it's most needed. if all these specific proposals were put in place, there would likely be a significant reduction in the procyclicality of asset prices – particularly the procyclicality that stems from the drying up of liquidity in a period of falling prices and spiking volatility. conclusion a strong economy requires a sound financial system. it's important to make sure that the policies that shape that system are designed not only to help financial markets operate effectively, but also to support stability over the long term. liquidity is essential to a well - functioning economy, and central banks have an important and evolving role in helping to maintain the liquidity of key markets. over the past year and a half, the bank of canada has introduced new liquidity facilities and expanded existing ones. although some markets remain impaired, these facilities have helped to restore liquidity in a number of key markets. we continue to monitor the situation carefully, and we will continue to provide exceptional liquidity to the canadian financial system as long as conditions warrant. macrofinancial stability is equally essential to a well - functioning economy, and central banks are in a unique position to promote it through the development of macroprudential policy, especially in the area of reducing the procyclicality of financial markets. while much work remains to be done, there is a growing appreciation of the importance of this issue. the progress that we have made and are making to develop effective financial system policy will help to return markets to better health. it will also help to restore confidence, and to build a stronger, more sustainable economy in the years to come. the counterparty risk management policy group has urged market participants to establish margin requirements and initial margins that are stable over the cycle. crmpg, " containing systemic risk : the road to reform " ( report of the crmpg - iii 6 august 2008 ). " because they are not required to calculate and hold a minimum of economic capital, such pools of private capital can have the freedom to take advantage of the possible herd behaviour of others that could result from those that apply more rigid risk management procedures required of regulated institutions. " imf, global financial stability report october 2007, 72.

and action plans were introduced, while existing financing mechanisms were strengthened to support the uptake of green initiatives. as 2020 approaches, malaysia is committed to continue implementing its strategic long - term plans and green friendly policies. budget 2020 is reflective of this commitment, with the allocation of a matching fund of rm10 million towards a joint united nations sdg - government fund to co - finance sdg initiatives 2 / 5 bis central bankers'speeches in malaysia. while government funding is important to realise the sdgs, most of the investments would need to be sourced from the private sector. an annual target of rm350 billion from private investments by 2020 was identified in the national roadmap for the sdgs, in line with achieving the targets of the 11th malaysia plan. thus, financial institutions are expected to embark on new financing and investment opportunities towards sustainable projects and practices. there is a large financing gap needed to be filled to realise the sdgs in developing countries, which is estimated to be between usd 2. 5 – 3 trillion annually. one major sector to drive a green economy is renewable energy. projections provided by the sustainable energy development authority ( seda ) estimates that rm 33. 5 billion is needed by private sector financing to achieve the national target of 20 % installed capacity of renewable energy by 2025 in malaysia. beyond that, financing is needed for other important sectors such as education, healthcare, social entrepreneurship and food production to galvanize sustainable development. there is also a more prominent role for financial institutions to advocate for or provide advisory services to businesses in sustainability areas. for islamic finance, green sukuk issuances have served as a bridge between islamic finance and sustainable investment. however, more is required for islamic finance to have greater impact and this pursuit can be further enhanced with the vbi initiative. with this islamic financial institutions will be able to play an important role in supporting the 2030 government ’ s shared prosperity agenda. nevertheless this will not be without its challenges. balancing different priorities on the social, economic and environmental fronts is a delicate act, as these may seemingly pull in different directions. it is inevitable there will be issues and challenges that need to be addressed on the path to attaining sustainability goals. i would like to touch on three key challenges and share the bank ’ s views and strategies in responding to these and to further accelerate our journey. first, is the low level of awareness, understanding and appreciation of sustainability practices and what it entails among stakeholders. this has led to limited integration