, will offer tremendous opportunities for banks with the right credential to establish their presence as regional players. on the retail side, there exists vast potential for growth – owing much to the demographic transformation in the region. asia is now home to a growing middle income population, the number of which is projected to reach 3 billion by 2030. the region will also be faced with an ageing population in the years ahead. with rising affluence, coupled with the need to achieve higher levels of income to support the increasing longevity, asian consumers will increasingly demand innovative, better quality financial products and services. at another end of the product spectrum is the scope for enhancing financial inclusion and reducing inequality for the traditionally underserved, such as poor households and small and medium - sized enterprises ( smes ). to unlock the potential of this segment as a driver of growth not only requires product innovation that delivers cost - effective, high - quality and innovative instruments, but also the use of new business model and technology to expand the reach of financial services, especially in poor and remote areas. second, the strong growth of islamic finance across asia in the recent years is another trend that is characterising the region. this dynamic segment will continue to offer strong growth bis central bankers ’ speeches prospect going forward, backed by its increasing importance as a tool for enhancing financial inclusion and reaching out to the underserved segments, the growing demand for sociallyresponsible investment and ethical financial services in this post - crisis era, and the increase in the wealth of individuals in asia. islamic finance has also proved to be a competitive and innovative financial intermediation channel that could strengthen global financial and economic linkages, led by the high growth segment of the sukuk market which has now become an important avenue for international fund raising and investment activities. third, the impact of global regulatory reform in response to the global financial crisis is another important force that would continue to drive change in the financial landscape. the asian financial sector was resilient throughout the crisis. but asia is not immune to the volatility and uncertainty that is constantly changing our financial and economic landscape. some areas of the regulatory reforms, notably capital and liquidity requirements, have now progressed into the implementation phase. integrating the new regulatory enhancements will have a fundamental impact on how banks in asia manage risks in their businesses, particularly in the context of optimising capital to support growth in the region. banks that are able to develop a strong governance framework to link

raise the standards on education in financial services. less than a month ago the faa – finance accreditation agency, an entity responsible for reviewing the quality of the learning programs that serve the industry was launched. this agency complements the initiatives by the international centre for leadership in finance ( iclif ) to produce capable and competence leaders. taken together, these efforts reflect our motivation in ensuring comprehensive talent development solutions for financial sector professionals throughout their career progression from entry - level up to leadership positions. equal emphasis is also given in the area of islamic finance. talent development has been identified as a key thrust to support industry growth and development, both domestically and globally. the role of several talent development institutions dedicated to serving the industry has been instrumental in contributing towards achieving this goal – the international centre for education in islamic finance ( inceif ) which is as a global university offering academic and professional qualifications in islamic finance, the international shari ’ ah research academy for islamic finance ( isra ) which is a centre for applied research in shariah and islamic finance, as well as ibfim or the islamic finance and banking institute malaysia – an industry - owned training entity for islamic finance professionals. despite being relatively new in existence, these institutions have now become increasingly recognised as leading providers of expertise in islamic finance, providing the islamic finance global community a reference centre for knowledge and talent development. bis central bankers ’ speeches i am most inspired by the optimism set by theme of this year ’ s conference – “ waves of change, oceans of opportunities ”. the theme very aptly sums up the business conditions we face today. rapid change is the new normal in today ’ s dynamic world. the rise and interconnectivity of asia as well as its demographic changes, the impact of regulatory changes and new technologies are all combining to transform the financial landscape of the region. survival and success in today ’ s challenging environment will depend on being able to exploit new growth opportunities that come with change. but this journey will not happen without determined action to lay the foundation for future success of the industry. in closing, i wish you an insightful and productive deliberation and trust that your discussion will be useful and will leave you with additional insights to tackle the challenges that you face. to our overseas guests, i hope you will leave kl with pleasant memories of your brief stay here. bis central bankers ’ speeches