also like to take this opportunity to invite all the delegates of this symposium to our financial lateracy exhibition that is being held in this building. this is an exhibition of more than 150 distinctive caricatures by a renowned malaysian cartoonist that depict the promotion of good habits for money management. the drawings are compiled from the annual pocket money books for students which were published by bank negara malaysia. more than 15 million copies of these pocket money books have been distributed annually to students since 1999 to more than 10, 000 schools throughout the country to encourage good money management habits. the drawings also illustrate the many aspects of the culture and environment in malaysia. i hope you will enjoy the exhibition and also draw inspiration from it. let me now conclude my remarks. the commitment to financial education is an important imperative. as the theme of this symposium reminds us, it is to improve the financial wellbeing of our communities. it is the very reason why we are on this journey. it is so that members of our society will benefit from the effective utilisation of the financial system and avoid despair and desperation that is brought by poor financial decisions. additionally, we will also help build more resilient and inclusive financial systems and thus contribute towards achieving more balanced growth and development. thank you and i wish you productive discussions at the symposium. bis central bankers ’ speeches

, especially in the subprime sector. performance deterioration is most notable in the more recent vintages. many industry observers believe the poor performance of more recently originated subprime loans is due primarily to looser underwriting standards, including limited or no verification of borrower income and high loan - to - value transactions. subprime lending has certainly created homeownership opportunities for borrowers with weaker or less certain credit histories. but because of the increased risk profile, lenders need to be especially diligent in maintaining prudent underwriting standards and in promoting manageable loan terms and sufficient consumer disclosure practices. further, as part of an erm process, as lenders design more complex products they need to identify ways to clearly communicate the product features and risks to their customers. subprime mortgages typically carry higher interest rates than prime loans. it is not uncommon to find margins of 600 basis points or more on adjustable rate subprime loans after the expiration of a teaser rate. not surprisingly, some borrowers are unable to keep up with their mortgage payments once these payments fully adjust. in some cases, if alternative financing cannot be found, borrowers may be forced to sell their home or enter foreclosure. and given prepayment penalties, home price appreciation slowing significantly and capital market investors becoming more conservative, some borrowers may be having more difficultly in refinancing to avoid foreclosure. supervisors are discussing what can be done to ensure that these types of loans are being originated in a safe and sound manner and that consumers are being provided with clear and balanced information so that they can fully understand the terms and risks of these products. subprime loan underwriting, when done prudently, should reflect all relevant credit factors, including the borrower's ability to service the debt. in the current environment, risk managers should review policies governing the use of loans with limited or no documentation and simultaneous - second mortgages. lenders that do not account for tax and insurance burdens in assessing borrower qualifications should understand the associated risks. it may even be prudent to escrow tax and insurance payments to ensure that the collateral is adequately protected from physical casualty losses as well as tax liens, or the lender should inform borrowers what should be set aside to meet the periodic insurance and tax payments on their homes if these payments are not already included in their total monthly mortgage payment. conclusion all financial institutions need sound risk -