we liberalised our financial sector thus freeing our capital markets and wealth management industry to grow. indian companies that are expanding need capital, and will find singapore a viable location to raise funds, be it debt or equity. the companies can tap into a large and growing investor base in singapore. close to 200 international fund management firms and 150 venture capitalists operate out of singapore, managing over us $ 200 billion in assets. to support the growth of our economy, we are investing heavily in human capital, upgrading our skills and refreshing our knowledge. but in a small country of three million people, the talent pool is never big enough. we will therefore continue to attract talent globally. over the years, we have benefited greatly from an inflow of talent from india, as well as of nris from around the world, and we will continue to welcome them. beyond augmenting our talent pool, foreigners living and working in singapore enrich our culture and diversity. they help us to develop an even more cosmopolitan outlook, and keep our city state abuzz with vibrancy and energy. external linkages besides restructuring our domestic economy, we also need to expand outwards, to invest in the region and ride on its growth. to do so, we need to expand our horizons, to understand more deeply the world around us, of which south asia is a major focus of our interest. the singapore economic development board will be setting up an office in mumbai. this will be its first office in india, to better service indian companies which are looking at investing in singapore and our region. more importantly, our companies also need to venture out of singapore, to ride the growth of india. to better appreciate conditions and opportunities in india, singapore plans to set up a south asian institute ( sai ) later this year. the institute will be part of the national university of singapore. it will track economic and political developments in the subcontinent and collaborate with key institutes in india and elsewhere. the sai will complement the work of the current east asian institute ( eai ) and institute of southeast asian studies ( iseas ). together, these institutes will provide us with a more comprehensive assessment of the region within a seven - hour flight radius, and so encourage more of our companies to venture abroad. in fact, singapore companies have already entered into many businesses in india, including it, telecommunications, hotels, township development, professional services, port management and other infrastructure projects. earlier this week i visited the information technology park in bangalore -

the loan and securities portfolios, the extent of currently non - performing loans, exposures from trading and counterparty positions – can result in differences in stress test severity over the cycle. what is the optimal degree of cyclicality for the stress testing regime? how does cyclicality of stress testing interact with other cyclical elements, such as the countercyclical capital buffer and the incoming current expected credit loss ( cecl ) approach to loan loss provisioning? how should the piece fit together? finally, one concern that has been raised about the federal reserve ’ s approach to stress testing and integration into the ccar program is that of “ model monoculture ” – the idea that banks will be incented to develop models that mimic the fed ’ s models rather than developing their own independent approaches. 17 significant commonality in modeling approaches in the banking system could result in banks adopting similar risk exposures and hedging techniques, exposing the sector to additional systemic risk and potential future instability. how do we measure this risk? what should we think about differences ( and similarities ) between bank - generated and supervisory stress test results, both for a particular stress test cycle and over time? what disclosure and transparency policies about supervisory models can address these concerns, while still supporting insight and credibility into the dfast and ccar stress testing programs? these are big questions to which i do not have answers. but they are the questions that challenge policymakers as the regulatory and supervisory regime put in place following the crisis is re - examined and, appropriately, evolves in the wake of that re - examination. a disciplined analytical approach to these topics is critical in weighing future design choices, such as those made during the initial implementation of scap, ccar and dfast stress testing. research on these topics could make substantial and meaningful contributions. i appreciate the opportunity to talk about these issues and hope that my discussion spurs some ideas and new research. thank you. 1234567891011121314151617 1 international monetary fund. “ global financial www. imf. org / en / news / articles / 2015 / 09 / 28 / 04 / 53 / sores042109c stability report. ” april 2009. 2 david s. scharfstein and jeremy c. stein. “ this bailout doesn ’ t pay dividends. ” the new york times. october 21, 2008. 3 viral v. acharya, irvind gujral, nirupama