that warrant centralised supervision. “ keen is the eye of the guest ” ( gloggt er gests augað ) as an icelandic proverb has it. of course nationals should be involved in supervision : often it is they who pick up the vibes and the market talk. and – while i do think that many governments don ’ t want to cede control over bank licensing issues to foreigners, i don ’ t attach as much importance as some to the relevance of national political pressures on the supervisor. thus, it ’ s not just the implicit political protection that a plausible rogue may seek and secure : any national regulator worth their salt should be able to stand against that. but in periods of collective national myopia such as that which generated the property bubble in ireland, the chance of getting somebody whose judgement is not affected is greater, the more distant their base. it ’ s time to start the ball rolling in a direction going well beyond the current mandate of the esrb and the esas. let me be clear that centralised supervision should not blindly apply common macroprudential ratios across the whole of europe regardless of national, regional or sectoral credit conditions. where circumstances warrant it, transitory variations in capital ratios and other macroprudential tools ( such as loan - to - value ratios for household mortgages ) must be part of the toolkit. that is needed today : maximum harmonisation, understood to mean, for example, that minimum capital ratios must never vary by country, is not necessary to retain the advantages of the single market. even when regulation is as centralised as i would wish it to be, the regulators must not hide behind the single market as an excuse for dodging unpopular bubble - bursting measures of restraint. a pan - european deposit guarantee scheme is often mentioned as the second key element of any banking union. but of course the current guarantees, covering up to €100, 000 per person, do not cover the largest and most mobile funds. it is not by paying out on insured depositors that the irish public finances have been crippled. no : the direct fiscal costs of bank failures have always come in large part from indemnifying non - insured depositors. no bank senior creditor in the euro area has lost a penny in the crisis and the same is true in the united states – but only since september 2008 ; before then bondholders and uninsured depositors did suffer losses in the us. even if the irish

of - sales terminals being fully emv - compliant. with this, malaysia will become the first country in the asia - pacific region to successfully migrate on a national scale from the magnetic stripe environment to the emv chip - based credit card infrastructure. ladies and gentlemen, for malaysia to fully adopt e - payments, the task ahead requires great determination and commitment from all sectors. from the central banka€™s perspective, a strong motivation for promoting e - payments is in the eventual savings from the reduction of paper processing and printing, and the more efficient distribution of money in electronic form in the financial system that generates immediate economic value. research studies have shown that shifting from an all paper - based to an electronic - based payment system will generate annual savings of about 1 % of the gdp. all stakeholders, including the financial institutions, payment system providers, the authorities, the corporate sector, and the consumers, have their respective roles to play to support this national agenda to reduce the use of paper - based payment instruments, particularly cheques, in malaysia. in this regard, the government had recently announced in the 2006 budget its intent to increase the acceptance of electronic means of payment with the government and to promote the use of epayments nationwide. this should provide a catalyst for the adoption of e - payments on a national scale, as most individuals and businesses have payment transactions with the government. key to making this a success is the need to review the business and operating practices and address any impediments that may hinder the use of e - payments. these practices ranges from the inability to store and collect bank account numbers, acknowledging electronic payment and receipt notices, instructing payments electronically, and many more that may be identified during the discussions at this forum. all corporations and institutions that are present at this forum should consider undertaking a business process reengineering in your own organisation to fully use the e - payment channels that are being offered by the service providers and the financial institutions. as a national agenda, i would like to propose that this forum debates and considers the feasibility of setting a realistic target date, perhaps by the year 2010, for a full implementation of a national e - payment roadmap that specifically outlines the strategies and realignments of the business processes and operating practices, for the nation to be fully engaged in making the migration a success. ladies and gentlemen, let me now move on to the third key point mentioned earlier on the commercial interfaces, whereby the underlying business models and pricing mechanisms for