of banks and other financial institutions as the basis for setting risk sensitive capital requirements. and as supervisors become confident that the risk management processes of an institution are appropriate to match its risk appetite and operations, minimum capital requirements will edge downward. nevertheless, a level of conservatism in minimum standards will be retained, which any responsible and prudent banker would no doubt agree with, at least in principle. models are an abstraction of reality. supervisors will continue to maintain a healthy sense of skepticism. despite good intentions and best efforts, predictions made by models are never exactly right and sometimes very wrong. conclusion in conclusion, we should not look at the release of the final version of basel ii as the end of the process to set more risk - sensitive capital adequacy requirements for banks. it is really the end of the beginning. basel ii is a milestone on a longer journey. one that will occupy the energies of bankers and prudential supervisors for many years to come. this is not meant to be a discouraging note. quite the contrary. because this journey will be one of continuous improvement that can, if we do our work well, lead to stronger banks and more resilient financial systems. i wish you all useful discussions on the major challenges to be addressed, and on the important benefits that await us as we continue this journey.

calls for policy responses at the national level but also at the international level. it also calls for the consideration that such policy responses may have implications that extend beyond the domestic borders, benefits may also be derived from cross border coordination of policy responses to increase the prospects of achieving the desired outcomes. our conference today focuses on the impact of economic and financial globalisation on the role of central banks, as well as to assess how central banks can effectively contribute to promote stability in this environment. in particular, the conference will be looking at the implications and challenges that globalisation brings to the mandate of the central banks in preserving monetary and financial stability. the pace and nature of globalisation has also brought significant stress to the international financial architecture. the current financial crisis has highlighted the vulnerabilities in the international financial architecture, leading to renewed thinking about the reform of the global financial system. tonight, joseph stiglitz will be speaking on " strong institutions for growth and crisis management ". tomorrow, we will address some of the specific management challenges central banks face in a globalised environment. we will discuss some recent developments of central banks'cooperation and the areas for reform of the international financial architecture. ladies and gentlemen, the crisis presents an opportunity for us to re - evaluate, promote and embrace sustainable long terms solutions. our focus is for the discussion to contribute to the means through which central banks can contribute more effectively in promoting stability and economic growth. this conference will provide an opportunity to reassess our traditional views on many of the issues before us. on this note, i wish you a very engaging and substantive conference.