Consistency and improvement in bank risk management is thus a prerequisite to improved, and more rational, capital regulation. The second leg is increased market discipline. Market discipline, of course, can occur only to the extent that the banks make information available to creditors and counterparties that have the ability to respond to that information.
They remain an impediment to the promotion of transactions and to the development of liberalized and deep financial markets in this region. 4. Improving payment and settlement systems in Asia: respect free markets  I would like to emphasize the utmost importance of improving the post-trade infrastructure of securities markets in Asia.