system. the implementation of global financial reforms has however, also substantially increased the regulatory complexity associated with the proliferation of binding “ one - size - fits - all ” prescriptions. while these rules mainly aim to address the fundamental weaknesses of the global financial system exposed during the crisis, it is important not to lose sight of other critical elements of sound regulation and supervision. the crisis has underscored the need for judgment to have a greater role in regulation and supervision. the implementation of global reforms is also proceeding at a time of tighter global financial conditions and weaker global growth. while the work of the basel committee, now more than two years old, suggests that its effects on economic growth will be modest, the highly dynamic global financial conditions needs to be taken into account in the implementation of the new standards. bis central bankers ’ speeches in addition, in a more interconnected world, building asia ’ s resilience to future shocks has also included significant progress in the arrangements to respond to potential threats of a crisis on a regional scale. these arrangements are currently being strengthened in asia, through regional platforms for cooperation and more developed home - host supervisory arrangements that reflect the wider regional footprint of financial institutions in asia. part 3 at this point, allow me to offer some reflections on the changing economic and financial landscape for internationally active financial institutions. asia is host to a diverse group of foreign financial institutions, many of which have a long history and entrenched presence in the region, with strong roots in our local economies. for the most part, these institutions have made important contributions to the development of domestic financial systems and economies. this includes meeting the demands for financial services in areas not being extensively served by the domestic financial system. while the international policy response to the global financial crisis has been extensive and on an unprecedented scale, an area that has not been as extensive is the cross - border dimension of policy making. more specifically, the global financial crisis has highlighted the gaps in the international framework for the regulation and supervision of the cross - border activities of financial institutions. this has generated renewed concerns on the extent to which external shocks might be transmitted to the domestic economies as a result of the presence of such international foreign financial institutions. as part of the international regulatory reforms, significant progress has been made to ensure that systemically important financial institutions have a higher degree of resilience and stronger incentives to reduce their systemic risks over time. this includes through the holding of higher capital, and requirements for all global sifis ( systemically

reputation has been diligently built over the decades. we owe it to the public and future generations to preserve the integrity and credibility of the bank. thus, we have zero tolerance for unethical behaviour leading to fraud, including corruption. staff must be mindful that their conduct must not give rise to any perception of corrupt practices. the bank ’ s management will take stern action against those who perpetrate, facilitate or are complicit in such acts. we will not protect such wrongdoers and will cooperate with the relevant authorities to ensure that the appropriate punishments are meted out. in the last few years, the bank has expanded its activities into project management. our scope of responsibilities and stakeholder groups have also expanded in tandem. in order to ensure continuous integrity safeguards, the bank has refreshed its framework and guidelines to include the procurement process, project management and whistle blowing to mitigate current and emerging project risks. third parties which are engaged by the bank must adhere to ethical practices as outlined in the vendor code of conduct, to be made publicly available soon. in closing, i would like to express my deep appreciation to assistant commissioner tuan mohan and his colleagues from macc. we are very privileged to have had the opportunity to benefit 1 / 2 bis central bankers'speeches from their insight and experience and it will help us do our part in combating corruption. may this occasion foster an even closer cooperation between the bank and macc, and herald many more joint events to come. 2 / 2 bis central bankers'speeches