Just as stress testing is important at the enterprise level, we need to upgrade our stress testing procedures at the systemic level as well. In the aftermath of the Asian financial crisis, and in the context of the increased discussion on global financial architecture, the World Bank and the IMF introduced a new procedure for “Financial System Assessment Programmes” (FSAPs).
Following the onset of the crisis, including through the enactment of Central Bank Reform Act of 2010, we introduced significant changes to the regulatory framework and our supervisory culture and approach. This has delivered a more assertive, risk based, outcomes-focused and analytical approach to supervision. Enforcement is now an important tool to effect deterrence, achieve compliance and promote the behaviours we expect.