jacqueline loh : opportunities innovation in central banking – seizing remarks by ms jacqueline loh, deputy managing director of the monetary authority of singapore, at the bis innovation summit, 25 march 2021. * * * introduction 1. good morning, good afternoon and good evening – depending on where you may be attending this global event from. i congratulate the bis on the success of this inaugural bis innovation summit ; which demonstrates the central banking community ’ s strong commitment to innovation, so that we may better serve our stakeholders. 2. i would like to share some perspectives on central bank innovation to round off this event. firstly, why central banks should embrace innovation ; secondly, how central banks can facilitate and lead innovation while managing the inherent risks ; and lastly, how central banks can channel innovation capabilities to address two key challenges – improving sustainability and enhancing cross - border payments. embracing innovation 3. let me first start with why central banks should embrace innovation. innovation is transforming the financial sector. digitalisation of financial services has made it easier for financial institutions to expand their global footprint, opened the door to new players, and set the stage for increasing cross - border connectivity. the adoption of new technologies has become more prevalent, and is fundamentally changing how the financial system functions. distributed ledger technologies for example, have seen use cases expand beyond digital payments and trade finance, to the security of data and personal identity, as well as anti - money laundering. artificial intelligence and machine learning enable the industry to make much better use of available data than possible previously, by efficiently developing a deep understanding of the unique needs of their customers and risk profiles. central banks and supervisors must transform alongside the financial sector, in order to maintain effectiveness in fulfilling our mission. 4. our central banking and supervisory mission remains unchanged. but given the rapid transformation and the changing landscape, the way we achieve our mission and objectives needs to evolve quickly. overall, our approach must be to ensure that our toolkits and methods remain relevant and fit for purpose. to do so, we need to be informed by a deep understanding not only of the new players and their products and services, but also of the new technologies – how they work, why they are being adopted, how they better serve customers ’ needs, how they are re - shaping financial services and the broader financial sector, and the opportunities and challenges they present. 5. the technologies that are transforming the financial sector can also be used to 1 / 5 bis central bankers'speeches transform central banking and supervision

4 percent ) and slightly below poland ( 79. 6 percent ). however, growth in romania was not evenly distributed. bucharest is currently above one hundred sixty, while much slower converge took place for other regions. i cannot emphasize strongly enough that continuing and improving the absorption of eu funds is the best way to boost the potential growth of our economy. an additional factor proven to boost the economy is the human capital. understanding the sources of economic growth and the role of education, topics that many papers will cover during this conference, is of paramount importance. 2 / 3 bis - central bankers'speeches distinguished audience, last but not least, during your social program, in the carpathian mountains - sinaia and at bran castle - you will discover or re - discover some parts of romania, a country with a rich history. allow me to add a few fun facts about sinaia, which is an eponym of mount sinai. by the end of the 17th century, a group of monks, led by mihail cantacuzino, a landlord of those times, went on a pilgrimage to palestine and the sinai peninsula, to saint ekaterina monastery. once returned, they established a monastery in the poorly inhabited, but abundantly beautiful area, called sinaia monastery. a century later, the first king of romania, carol i fell in love with the place and built pele castle, his summer residence, which you will visit. little by little, sinaia became popular among the members of the high society : they started building summer residences as well as hotels, villas. one can still admire there original buildings of the 19th and early 20th centuries. i hope you will have an enjoyable trip in the carpathians. to conclude, i am confident that the conference will be a successful event. i wish you all fruitful debates and a pleasant stay in romania! thank you! 3 / 3 bis - central bankers'speeches