most countries, such initiatives lacked the coordination necessary to provide an effective system - wide defence against cyber crimes. part of this change will be influenced by the attention and importance that supervisors place on the management of security risks. the role of supervisors and the public sector in the face of further digitisation of the financial sector, the responsibility of financial supervisors in ensuring the stability and integrity of the financial system will become increasingly challenging. regulatory and supervisory frameworks need to be updated to acknowledge the significance of cyber security threats. it is necessary for us to establish a clear expectation on the management of such risks by financial institutions. we should outlined clearly in key areas that could cause threats such as outsourcing arrangements with third party service providers, stress testing, anti - money laundering requirements and business continuity plans. to carry out our oversight responsibilities effectively, supervisors will also need to develop the capacity to assess and identify key vulnerabilities in the increasingly sophisticated web of information networks and systems upon which the financial sector depends. for one, supervisors need to arm themselves with the skills and knowledge to make assertive and rigorous assessments of a financial institution ’ s it risks and be able to form judgments about the adequacy of control systems. training and development programmes for supervisors should therefore give the same emphasis as other critical risks such as credit and market risk. the establishment of specialist supervisory teams or units dedicated to it risks also plays an important role in building a strong knowledge base within supervisory authorities to support effective supervision of it risks. just like industry practitioners, it is imperative that any knowledge and skills acquired by supervisors are in tandem with the latest developments in both cyber security and cyber threats. beyond efforts to build technical capabilities, supervisors and other law enforcement agencies also need to be equipped with the legal powers to investigate and prosecute cyber criminals. given the borderless nature of cyber risk, this is a significant challenge. cyber crimes can be launched from anywhere in the world, with targets in many countries. this underscores the need for a more coordinated global response that should involve criminal law enforcement agencies and financial regulatory authorities. in this regard, cross border collaboration must be intensified to establish information sharing arrangements on cyber risks and trends. looking further into the future, a more comprehensive legal international framework, such as a treaty, may be useful to empower authorities to bring cyber criminals to justice. concluding remarks let me now conclude. the digitisation of the economy and the financial sector is a process that cannot be stopped and we need to embrace it

agreed, as well as an increase in its financial size. first, the fund ’ s lending framework has been reformed radically. in particular : ( a ) conditionality has been simplified and tailored to the varying strengths of countries ’ policies and fundamentals ; the imf will rely more on pre - set qualification criteria ( ex - ante conditionality ) and less on traditional ( ex post ) conditionality as the basis for access to its resources ; ( b ) a new flexible credit line ( fcl ) has been introduced, for countries with very strong fundamentals, policies, and track records of policy implementation. countries eligible to the fcl are granted large and upfront access to fund resources, within limits to be assessed on a case - by - case basis and with no ongoing ( ex post ) conditions ; ( c ) the traditional stand - by lending arrangements have been made more flexible, to enable high access on a precautionary basis for members that do not qualify for the fcl ; ( d ) non - concessional loan access limits for countries have been doubled ( to 200 and 600 per cent of quota on an annual and cumulative basis, respectively ), in order to bolster countries ’ confidence that adequate resources would be available to meet their financing needs. second, and perhaps more important, the fund ’ s lending capacity has been trebled from the pre - crisis level, from $ 250 billion to $ 750 billion. a number of advanced and emerging countries have volunteered to lend new resources for more than $ 500 billion, through bilateral loans and imf notes purchase agreements. on the whole, the imf ’ s lending toolkit has been re - oriented from crisis resolution to crisis prevention, and the substantial increase in financial capacity has enhanced its credibility as a multilateral insurance mechanism. the fcl plays a special role in this new framework. its success so far ( as in the cases of mexico, poland and colombia ) bears witness of a radical shift in the sentiment of the potential beneficiaries. third, a decision has been taken to allocate new special drawing rights ( sdrs ) equivalent to $ 250 billion, two fifths of which to emerging and developing countries. sdrs are a means for imf members to obtain freely usable currencies from other members, and they therefore help to increase countries ’ international reserves. one purpose of these reforms is to convince emerging countries to abandon the quest for self - insurance through the massive accumulation of official reserves against potential crises and