##sable and resolute action. after having set up the previous two lines of defence, a third step is now needed in order to improve very significantly medium and long - term confidence. in this context, the credibility of the reforms to improve resilience of the global financial system as well as the stability of the global economy is of the essence. we will see the benefits of the reforms not only in a longterm perspective, but already today, because confidence today, and therefore the success of the decisions already taken by central banks and governments, depends on the quality and credibility of the ambitious reform exercise that has started a few months ago and that is presently deepening with the recent and future meetings of the g20. in my remarks i have concentrated on the financial aspects of the turmoil, which are very much in the domain of the financial stability forum. the financial stability forum, whose task is to elaborate international supervisory and regulatory policies and standards, has drawn the first set of lessons from the turmoil along the lines i have described above. deepening its work and implementing it is now of the essence to establish an appropriate and effective reform of the global financial system. the imf participates in this work and provides relevant inputs as a member of the fsf. there is also a very important role for the imf itself in its assessment of macro - financial risks and systemic vulnerabilities, and in its surveillance of macroeconomic policies. credible stability in the long run requires macroeconomic policies that have a medium - term orientation and are stability - oriented. pro - cyclicality can stem not only from unsatisfactory regulatory policies in the financial sphere, but also from macroeconomic policies, where it is equally undesirable. in a global context, there is hence a need to significantly strengthen imf surveillance over economies that are systemically relevant. the imf ’ s multilateral consultation with key partners is a process that can be built upon in this context. in a longterm perspective, greater discipline in the global economy is needed to foster stability and help balance short - term and long - term prosperity more appropriately. thank you for your attention.

for singaporeans in financial services is $ 6, 400, compared to the national median of $ 4, 000. financial services will become even more important in the future economy. • the sector grew by an average of 8. 6 % p. a. during the last five years ( 2011 – 2015 ), two times faster than the overall economy at 4. 0 %. bis central bankers ’ speeches • if the sector continues to grow twice as fast as the economy over the next five years – not easy but we aim to – financial services will make up 14 % of the economy in 2020, compared to 11 % in 2010. now, the bad news. the financial sector is inherently vulnerable to risk and volatility. • as crisis after crisis has shown, problems in the financial sector quickly become problems for the entire economy. • the global financial crisis imposed a tremendous cost with the global economy estimated to have lost 5 percentage points of growth between 2007 and 2009, not to mention the human dimension in jobs lost and companies closed. • as an international financial centre – connected to the global network of financial flows and playing host to hundreds of foreign financial institutions – singapore is particularly vulnerable to contagion and shocks from abroad. the global financial industry is facing unprecedented headwinds. • we are looking at a prolonged period of low growth and low interest rates – a combination that spells reduced earnings and increased risks for most financial institutions. • the regulatory and compliance burden has increased significantly, following wideranging regulatory reforms in the wake of the global financial crisis. • the reforms were necessary to help make global finance safer ; but their cumulative effects do pose a challenge for the profitability of financial institutions, especially banks. • unprofitable banks are not necessarily safe banks. finally, the financial industry in many parts of the world is facing a crisis of trust. • financial institutions have come under increasing public scrutiny over their business conduct. • globally, we have seen repeated cases of mis - selling financial products, manipulating benchmark rates, and using the financial system for illicit transactions. singapore ’ s financial sector has to overcome these headwinds and manage these risks as it develops further. and it must do this while seizing on opportunities presented by a growing asia and technological change. let me touch on three attributes that our financial sector needs to maintain and strengthen in the years ahead : resilience, dynamism, and trust. a resilient financial centre i will start with resilience. • we