We seek to clarify in advance what we might or might not regulate, in order to help entities to roll out their services. Our regulations are reactive; necessarily so because we have to respond to market and industry developments. However, we must respond to market changes promptly, and complement prompt reaction with a forward-looking perspective, seeding innovation and attracting players in electronic financial services (EFS). The MAS intends to set up a venture capital fund and a grant assistance scheme, to incentivise electronic financial services in Singapore. Our purpose is to position Singapore as a test-bed for innovative electronic financial services, and a centre for incubators of electronic financial services start-ups. The fund is not intended to replace the venture capital industry, but will instead act as a catalyst to develop Singapore into a leading EFS hub. The objectives of these two schemes are twofold: •  To raise efficiency of financial sector players through the employment of EFS technology. •  To attract players to base their regional or global capabilities in Singapore. We aim to build a strong industry base of major EFS players, develop in the requisite skills and expertise, build supporting e-frastructure, and "electronicise" existing brick-and-mortar financial services. Conclusion Barring mishaps, the global industry trend towards greater integration and openness will continue. This will confront both regulators and industry practitioners with complex challenges.
But do not expect a zero risk environment - and do not demand it. Fear of failure is the antidote for instability. It will go a long way to underpin the long term health of the financial system. 5  Governor Lars Heikensten “The Riksbank’s Work on Financial Stability”: Speech at Göteborgs University, 25 November 2003. BIS Review 5/2004  9