that using digital finance to enhance financial inclusion would boost gdp by between 9 - 14 % in large economies such as indonesia and the philippines, and up to as much as 32 % in cambodia. 3 / 5 bis central bankers'speeches global banks will continue to play an important role in the region, especially in wholesale banking and the intermediation of us dollar flows. but the onus largely falls on asian banks to expand financial inclusion, especially at the retail and small business level. using innovative fintech solutions, they can mobilise untapped savings and provide access to credit for under - banked individuals and businesses. asia is fertile ground for digital innovation in banking. in indonesia and vietnam, only around a third of the population is formally banked. yet, their mobile phone penetration rates are above 100 % – that ’ s more than one phone per person on average! coupled with a young and tech - savvy population, what we have is a ripe environment for mobile banking. and we are seeing interesting innovations across asia, bringing banking services to the broader population. in indonesia, the financial services authority ( ojk ) runs a branchless banking programme with participant banks. called laku pandai, or “ smart man ”, the programme offers banking and financial services to the under - banked, supported by mobile phones and it facilities. dbs bank is collaborating with peer - to - peer ( p2p ) lending platforms to cross - refer clients. dbs will refer to the p2p lenders some of the smaller businesses that it is unable to lend to. in return, the p2p lenders will refer borrowers who have completed two successful rounds of fund raising to dbs for larger commercial loans and other financial solutions such as cash management. the road to financial inclusion is neither short nor easy. but it is an important one. broadening access to financial services will offer asian banks – and fintechs – the opportunity to grow their business while serving a social purpose. financial inclusion will be a key priority in the economic co - operation agenda when singapore assumes the chairmanship of asean next year. conclusion you will be discussing many of these issues in the days ahead. i look forward to hearing your insights. it leaves me now to hand over to john williams for his keynote address. he will speak on us monetary policy – a subject of evergreen interest to the financial industry and central banks around the world. i look out for john ’ s speeches not so much

for clues to what the fed might do next – though that is of course of great interest too – but for the original insights john provides on some of the deep, conceptual issues in monetary policy. john has made thought - provoking contributions in areas such as the natural rate of interest, or r *, and nominal gdp or price level targeting for monetary policy. it is my pleasure now to invite john to share with us his insights on how we should view monetary policy in a changing world. 4 / 5 bis central bankers'speeches 1 bis ’ definition of international claims comprises cross - border claims and local claims of foreign banks ’ affiliates in foreign currency. 2 2 based on a presentation by e remolona ( 2017 ), “ bank flows in emeap : neither a lender nor a borrower be ”. see also e remolona and i shim ( 2015 ), “ the rise of regional banking in asian and the pacific ”, bis quarterly review, september 2015. 3 4 world bank ( 2015 ), “ the global findex database 2014 : measuring financial inclusion around the world ”. 4 5 asian development bank ( 2017 ), “ accelerating financial inclusion in south - east asia with digital finance ”. 5 / 5 bis central bankers'speeches