heng swee keat : singaporea€™s investment banking industry and capital markets keynote address by mr heng swee keat, managing director of monetary authority of singapore, at the singapore investment banking association 30th anniversary dinner, singapore, 6 october 2005. * * * i am honoured to address this distinguished audience, and to join you in celebrating the 30th anniversary of the establishment of siba. may i thank the chairman and the committee for this honour. global investment banking trends in the 30 years since siba's predecessor body, the merchant bankers association, was set up, the business of underwriting and trading has been dramatically transformed. the globalization of capital markets, driven by liberalisation and technological advances, has created a web of interconnected markets. this has facilitated innovation and sharpened competition. financial transactions now transcend sovereign borders as well as traditional product lines. investors have also become more sophisticated and demanding, and a new array of products has evolved to meet complex needs. this has led to significant growth, for example, of derivatives instruments to complement the cash markets, including within asia. responding to these new challenges, investment banks have deepened capabilities, and many have also undergone significant consolidation, to achieve scale and depth. beyond the traditional underwriting business, advisory and fees - related businesses have expanded. investment banks also structure, market and trade in a full range of financial instruments - equities, fixed income, derivatives and hybrid instruments. recognizing these changes, siba enlarged its membership, and took on its current name in 2000 to reflect its role in representing a wider group of members. that was a very timely move. developments in singapore's capital markets in the last 3 decades, singapore's capital markets have grown in tandem with the growth in the global markets. new listings have grown, and the singapore exchange has attracted many foreign companies. foreign listings now account for more than a quarter of total listings, making sgx the most international among asian exchanges. our debt market has also grown, with outstanding corporate debt issuance rising from s $ 23 billion in 1995 to s $ 123 billion in 2004. siba and its members have contributed to our success in developing our capital markets. the association has not only represented the interest of the investment banking community well ; its initiatives have also facilitated the development of investment banking activities in singapore. the professionalism and integrity of siba members in executing financial transactions have ensured that we maintain investor confidence in our markets. going forward, capital markets worldwide will

financing needs of their clientele. as the economy grew more than six percent for the last six years ( 6. 7 percent in 2017 ), the latest gdp data likewise showed that the national capital region ( ncr ), at 6. 1 percent, grew less than the national average. this certainly means that economic activities in the provinces are expanding and growing. in recent years, the davao region has consistently posted growth above the national average, being the second fastest growing region of the country in 2017, at 10. 9 percent gdp growth. we are counting on our rural banks to assist in further bringing about economic progress to the rural communities. bsp ’ s reform agenda for an inclusive banking system for our part, the bsp remains strongly committed in providing an enabling regulatory environment for the overall safety and soundness of the banking system. we always emphasize the importance of prudent banking operations, highlighted by strong capitalization and adequate liquidity position as buffers against unforeseen shocks. we also continuously encourage banks to aspire to the highest standards of corporate governance and risk management ; to go beyond just complying with banking regulations so you can proactively respond to emerging banking developments and challenges. as part of continuing reforms, the bsp approved the adoption of minimum prudential liquidity requirements ( mlr ) for stand - alone thrift banks, rural banks, cooperative banks, and quasibanks. these requirements are designed to enhance covered institutions ’ resilience to liquidity stress events and is a significant step in aligning our supervisory framework with international standards. it also illustrates the bsp ’ s commitment to the application of proportionality in our approach to supervision. we also wish to leave no banking institution behind. together with the philippine deposit insurance corporation ( pdic ) and the land bank of the philippines ( lbp ), we have re - launched the consolidation program for rural banks. this will further strengthen the industry through 2 / 4 bis central bankers'speeches stronger financial condition, enhanced management and governance, more synergies and economies of scale, and wider market reach. the continuing prudential reforms have given us the confidence to further liberalize our rules to allow more business with operational flexibility. towards this end, we allowed banks to utilize cash agents as cost - efficient service delivery channels. rural banks can now establish branchlite units to offer a defined set of services with less regulatory requirements. the framework for basic deposit account further enhances the smooth onboarding of un