with yet more egregious misconduct, or it could seize this opportunity to restore high ethical standards. thankfully, we are in a better place in singapore. the financial industry here is generally well regarded and trusted. but we have not been immune to some of the egregious practices in global finance, for example, attempts to manipulate financial benchmarks and the mis - selling of financial products. we must be on our guard, and work to further strengthen ethical standards and a culture of trust in the industry. • we must foster a culture in the industry that looks beyond the question “ is this legal? ” to the larger question “ is this right? ”. • for without sound ethics, there can be no trust. without trust, there can be no confidence. and without confidence, there can be neither growth nor stability. we are gathered here to discuss the future of financial market regulation. may i suggest that restoring a culture of trust based on strong ethical standards is imperative to securing a bright future for a purposeful financial industry. thank you and i wish you all fruitful deliberations. bis central bankers ’ speeches

top. many financial firms have issued values statements and codes of conduct espousing principles, norms and behaviours that apply universally across the firm. it is important to have such a tangible point of reference for standards of conduct, but setting the right tone requires more than lofty exhortations for good behaviour. first, lead by example. management must take time and effort to clearly articulate the firm ’ s core values and purpose. they have to demonstrate commitment and credibility by “ walking the talk ” with concrete policies, processes and actions. the firm ’ s leaders must themselves be seen to be guided by those same qualities they want their staff to emulate. and programmes to build a culture of trust and ethics cannot be a one - off exercise to fend off bad publicity or to placate the regulator. shaping culture demands a sustained effort. second, create a safe environment for whistle - blowing. this means providing the necessary mechanisms to challenge, question, and report ethical breaches. • a number of banks in singapore have put in place new channels for whistleblowing and enhanced the escalation and investigation processes to facilitate staff reporting. third, align human resource policies to a culture of trust and ethics. i have already mentioned compensation as being an important way to create incentives for the right behaviour. but the incentives for ethical conduct must go beyond compensation and encompass all hr policies : recruitment, on - boarding, appraisal, training and coaching, promotion, and career development. • an organisation ’ s hr policies and practices are the clearest demonstration of its value system, the qualities it regards as important. • in financial firms, it is important that these policies and practices dispel the perception of good ethics as a constraint on profitability or hurdle to career advancement. we are beginning to see some progress. bis central bankers ’ speeches • performance appraisals in some banks now take into account how an employee ’ s conduct is consistent with the banks ’ avowed principles and values. • others have developed balanced scorecards for remuneration that go beyond traditional measures of financial performance to include indicators relating to culture and controls. • yet others take into account a business unit ’ s record on compliance, customer experience, internal audit findings and other relevant considerations to underscore the organisation ’ s behavioural expectations of staff. conclusion let me conclude. the global financial industry ’ s standing with the public is at an inflection point. it could continue a downward spiral of mistrust