higher risk - taking or less liquid banks appears more responsive to a tightening of monetary policy. • this would seem to suggest that more stringent regulations tend to weaken the transmission of monetary impulses. • and the transmission of policy rate changes to other interest rates and asset prices may be altered if debt markets become less liquid as a result of regulatory changes. conclusion let me conclude by drawing together the main points. • microprudential policies are critically important for financial stability and we must get them right. • but the ability of microprudential policies to achieve financial stability may be dampened by credit cycles that have their roots in broader macro forces. • monetary policy matters for financial stability because it affects the credit cycle. to what extent monetary policy should therefore take account of financial stability remains an unresolved matter. • macroprudential policy potentially offers a way out by targeting the macro sources of financial instability, leaving monetary policy to focus on price stability. • but macroprudential policy is neither a panacea nor without cost or distortion. • and we need to better understand the interactions of monetary, microprudential and macroprudential policies, and how they influence price and financial stability. henry kissinger once asked zhou enlai – the late premier of china – what he thought of the implications of the french revolution. zhou replied, “ it is too early to tell. ” we are living in interesting times. • it has been a period of bold experimentation in both monetary and regulatory policies. • it is too early to tell what the implications of these experiments are. • we need much more research, experience, and the passage of time before we can draw firm conclusions on some of the issues that i have raised. • in the meantime, let us pray for the wisdom to do the best we can. and be humble. bis central bankers ’ speeches thank you. bis central bankers ’ speeches

ravi menon : powering the next stage of singapore fintech keynote address by mr ravi menon, managing director of the monetary authority of singapore, at the singapore - china ( chongqing ) financial summit, via video conference from singapore, 23 november 2020. * * * mayor tang, minister teo, assistant minister li, distinguished guests, ladies and gentlemen, good afternoon. welcome to the 3rd singapore - china ( chongqing ) connectivity initiative ( cci ) financial summit. let me first thank chongqing for hosting this summit. we are honoured to have with us representatives from all ten asean central banks. the global economy is recovering from one of the deepest recessions in history. with covid19 still raging globally, the recovery has been uneven and remains uncertain. yet, east asia – especially china and asean – has held up relatively well. china reacted decisively to contain the pandemic. its economy has rebounded and gdp has recovered to above pre - covid levels. asean is not far behind, with asean - 5 expected to grow by 7 % q - o - q in q3. trade between china and asean is booming again. as the rest of the world takes longer to recover, we must step up economic and financial integration between china and asean to sustain the economic recovery in the region. financial connectivity can play a particularly vital role in supporting this. taking stock through the cci over the past 5 years, chongqing and singapore have strengthened financial connectivity between the western region and asean. corporates from chongqing as well as the broader western region have found singapore an attractive destination to raise financing. as of april 2020, we have seen 117 cross - border financing deals amounting to usd 11 billion. chongqing enterprises raised usd 7 billion in singapore, while enterprises in sichuan, shaanxi, qinghai, xinjiang, guangxi and yunnan obtained nearly usd 4 billion of financing. cross - border loans from singapore grew 67 % y - o - y to reach rmb 5 billion this year. our financial institutions continue to establish in each other ’ s markets. a chongqing - based fintech, whalet, obtained a licence in singapore to conduct crossborder remittance this year. i am also pleased that vickers venture partners, a venture capital fund focusing on deeptech, will be establishing a qualified foreign limited partnership fund in chongqing. let us continue to build on the progress we have made. i suggest three areas where chongqing and singapore can work closer together