strong corporate governance and risk management practices will be given greater regulatory flexibility. whilst it is recognised that the regulatory framework should foster efficiency and competition, this has to be balanced with the objective of attaining soundness and preserving the stability of the financial system through the promotion of sound risk management practices. commensurate with the diversity and complexity of products and services, the financial landscape of the future will require the continuous upgrade of the risk management practices with improvements in the governance standards and enhancing of information management systems. the rationalisation exercises aimed at maximising cost efficiency and reaping benefits of group synergies has led to the emergence of more complex group structures of more diversified financial conglomerates. in relation to this, a holistic and integrated regulatory approach is being adopted to ensure that the activities of these financial conglomerates do not introduce excessive risks to the financial system. risk management standards are applied across the group and safeguards have been introduced to ensure risks are efficiently managed with necessary infrastructure for an overall view of the risk exposures within the group. fostering a customer - centric culture encompasses fair and equitable dealings with customers to engender greater trust and loyalty among customers and serving customers in good faith by extending products and services that are appropriate to their financial requirements and circumstances. greater innovation must therefore be complemented by higher levels of service quality. greater attention on excellence in customer service requires continuous investment in staff development, which will be a vital part of the process. harnessing the technology to deliver distinctive customer experience that combines the right mix of convenience and value is also an essential part of the process. in addition, adequate emphasis and resources need to be accorded to protecting customers'privacy and safeguarding their interests. in order to make a quantum leap forward, it is vital to continuously invest in human intellectual capital so as to create a pool of talent, skill and expertise that will drive the performance of the financial system. skilled individuals are needed to be able to deliver high value - added products and services, adopt advanced business practices and have the necessary competence to build confidence in the financial market and trust of the consumer. initiatives have been taken for putting in place specialised training organisations as part of the infrastructure for the development of highly skilled workforce for the financial sector. the international centre for leadership in finance is now in its 3 rd year of operations and more recently the international centre for education in islamic finance was established to meet the increased demands of islamic finance professionals, both in the domestic and international markets. the programmes

charles i plosser : restoring central banks after the crisis speech by mr charles i plosser, president and chief executive officer of the federal reserve bank of philadelphia, at the conference of the global interdependence center / bank of france, paris, 26 march 2012. * * * the views expressed today are my own and not necessarily those of the federal reserve system or the fomc. introduction i am delighted to be here today in this beautiful city and to have the honor to serve on such a distinguished panel with friends and colleagues. david kotok has been the guiding force behind the gic conferences over the past several years. he and his team at the gic never fail to gather an interesting and knowledgeable group of people to discuss important topics on truly global issues. so, i want to thank him and the gic for their efforts and contributions. i also want to thank our hosts, christian noyer and the banque de france. i am going to take a little different tack on the subject matter of this gathering. rather than focus on what new orthodoxy we should take away from the financial crisis, i want to argue that we need to restore some of the old orthodoxy. david did suggest that he wanted to have a conversation on important issues, so i intend to be somewhat provocative in an effort to stimulate such conversation. as usual, i want to stress that my views are my own and not necessarily those of my colleagues in the federal reserve system. i will focus my remarks on two related topics that have emerged as a consequence of the crisis. the first is the relation between monetary policy and fiscal policy. the second topic involves the role of a central bank ’ s balance sheet as a policy tool. these are issues that i believe are of fundamental importance to the role of central banks in our economies. the relationship between monetary and fiscal policies let me begin by sharing some thoughts on the appropriate relationship between monetary and fiscal policies. in the wake of the financial crisis and the ensuing recession, many countries around the world responded with a significant increase in government spending. some of this increase came about through what economists call automatic stabilizers. but there has also been a dramatic expansion in budget deficits attributable to deliberate efforts to apply fiscal stimulus to improve economic outcomes. this expansion in government spending has been very significant in the u. s., but it has also occurred in other countries. so what does this have to do with monetary policy? well, it turns out