process for greater interface among regulators becomes important, including that involving cross border interface. for the asian region, the east asian central banks have since 2007 established a monetary and financial stability committee to discuss assessments of risk and vulnerabilities to macroeconomic and financial stability in the region. the strategy for policymakers in asia has been to build a higher degree of resilience to be better positioned to withstand external shocks and to provide an enabling environment to achieve a sustainable economic performance. for central banks, the focus is on preserving monetary and financial stability. of equal importance is the development of the domestic financial infrastructure. important in the policy design of central banks is that the policies are anticipatory. delays in policy action or exit will invariably result in higher costs, over adjustment and other unintended consequences. a second aspect of policy is that rule based policies such as inflation targeting does not give the policy space to take into account sources of instability and other trends that may work to diminish the extent of such instability. rigid parameters, imposed by multilateral agencies and sometimes by rating agencies and the market also contribute towards reinforcing these conventions. current and future conditions are likely to be highly complex and varying and therefore not lending itself to rigid rules. in an environment that will continue to remain challenging for some time, this conference provides an important opportunity to discuss a wide range of issues from asia ’ s perspective, thereby contributing to the international discussions and understanding of the issues and their business and policy implications. asia ’ s experience will also provide additional insights in contributing towards the solutions for building a more resilient international financial system. i wish you an engaging and productive discussion. bis central bankers ’ speeches

market fragmentation " — by hosting a workshop with key stakeholders and academics. this was quite successful, and i look forward to such interactions being the rule. in addition, we need to improve our interaction and cooperation with other standard - setting bodies, such as the basel committee, the committee on payments and market infrastructure, the international association of insurance supervisors, and the international organization of securities commissions ( iosco ). while we have worked together in the past, we all owe it to the global community to seek out opportunities for improved cooperation and engagement. to improve fsb transparency, we will be taking a number of important steps. for example, on february 12, 2019, the fsb published a comprehensive work program on its website for the year 2 / 6 bis central bankers'speeches ahead. 1 this is the first time in the fsb ’ s history that the work program was disseminated publicly. over the term of my chairmanship, i will continue to look for steps that will allow all stakeholders to have a more open window into the fsb ’ s decisionmaking process and products. i believe improved transparency into the fsb process is critical to our mission. i ’ m reminded of lord hewart ’ s famous — and oft - quoted — remark concerning the importance of jurisprudence to the public : “ not only must justice be done ; it must also be seen to be done. ” we should be able to apply this concept to the field of global financial standard setting. rigorous vigilance the second principle i would like to discuss concerns how we assess and mitigate vulnerabilities in the global financial system. the post - crisis reforms addressed the fault lines that led to the crisis and the contagion effects felt around the world, but they will never replace the need for vigilance. if we are not rigorously vigilant, we still risk another crisis. what we need are forwardlooking methodologies that use the most advanced analytical tools to spot vulnerabilities well in advance before they lead to widespread financial distress and economic costs. here the academic community can continue to contribute with cutting - edge and robust modeling techniques. we can only mitigate financial vulnerabilities if we identify them accurately and in a timely manner. as such, the fsb ’ s standing committee on assessment of vulnerabilities under the leadership of fsb vice chair klaas knot of the dutch national bank will be directing a considerable amount of energy to developing a cutting -