on effective strategies for successful interfaces with sme customers. in some banks, completely new business cultures for their sme segments have evolved as a result which bodes well for the sme industry. the information provided by the sme credit bureau can further support efforts by banks to strengthen risk management for their sme portfolios, regardless of the level of sophistication and size of the institutions. banks with an sme credit model already in place can benefit from the bureau information in various ways. for example, as the bureau rating is determined based on diverse information obtained from various sources including ccris, trade credit data and the companies commission of malaysia, banks can use such information to bridge any information gaps and address the limited pool of internal data available for their internal models. such gaps currently exist, as banks in general are highly dependent on borrower information alone. in addition, given the diversity of information available within the sme credit bureau, banks would now have access to information on various economic sectors that may not be available within existing credit portfolios. at the same time, bureau ratings could be used by the banks to validate the robustness of their own internal models by comparing the ratings produced between their internal ratings and that by the sme credit bureau. for smaller and less sophisticated banks, the bureau information will supplement the current sme credit assessment methodology that is traditionally qualitative in nature. such banks will be able to obtain quantitative information from the bureau database to enhance the overall credit evaluation process, thereby supporting more informed and objective credit decisions. the benefit is not limited only to enhancing credit evaluation, but also provides the foundation for more effective portfolio analysis and management on an ongoing basis that are the hallmarks of any effective risk management system. for example, the overall quality of the sme portfolio can be monitored based on information available from the bureau to support analyses on the distribution of financing by rating, migration analysis and stress tests. the findings from portfolio analysis supported by the bureau information would assist sme financiers to better price their sme financing and facilitate more effective allocations of capital. moving forward, one of the roles that the sme credit bureau can effectively play is to provide market research and reports on the sme industry. this will expand its user base beyond sme financiers and creditors to include policy makers, economic and investment analysts, and even academic scholars. the credit information infrastructure in malaysia is advance, relative to other countries in a similar stage of economic

zeti akhtar aziz : central banking in the 21st century – implications of economic and financial globalisation opening remarks by dr zeti akhtar aziz, governor of the central bank of malaysia, at central bank of malaysia ’ s high level conference 2009 “ central banking in the 21st century : implications of economic and financial globalisation ”, kuala lumpur, 10 february 2009. * * * honourable governors, distinguished guests, ladies and gentlemen, it is my pleasure to welcome you to the bank negara malaysia conference on " central banking in the 21st century : implications of economic and financial globalisation " that is being held in conjunction with the 50th anniversary of bank negara malaysia. indeed, the conference takes place at a time when we need to reflect on the many issues that are emerging from the current global financial and economic crisis and the new challenges and lessons it brings to central banks. we are most honoured by the presence of central banks from more than 50 countries who have come to be with us on the occasion of our 50th anniversary. this gathering has also brought together distinguished speakers not only from the central banking community but also outstanding scholars and senior practitioners from the financial services industry. it is hoped that this conference will contribute to a greater understanding to the issues confronting central banks in the 21st century. indeed, we are now in a world that is fundamentally different, a world that calls for a greater appreciation of the changes that need to be made to the systems and structures, to the institutional arrangements and mechanisms, and to the manner in which we operate in this new environment. the international dimension of these changes calls for an outcome in which the international financial system is less prone to disruptions and failures and in which economic progress is a shared prosperity among nations. globalisation has had a deep impact on the way modern economies function. the benefits of globalisation have accrued to diverse communities and regions but it has also brought with it significant risks. while the asian crisis showed the effects of globalisation, it also showed that asia was able to rapidly rebound and continue to benefit from increased international trade and financial flows. the rapid restoration of stability and resumption of growth had confined the crisis to asia. as the current financial crisis is translated into an economic crisis, its repercussions are now being felt on a global scale. while the turmoil had its origins in the developed economies, its continued escalation has extended the effects of the crisis to the rest of the world. economic and financial globalisation thus not only