A number of the proposals being considered are international in nature, like those improving supervisory cooperation between regulators, and requiring higher loss absorbency capacity for G-SIFIs. However, primary responsibility for these G-SIFIs lies with national regulators, who must retain discretion over the specific supervisory stance to take with respect to these institutions. Conclusion 25. Let me conclude. This is a fertile time for the study of finance and risk. The financial landscape is undergoing dramatic change. The three dimensions of rebalancing that I outlined are still being played out, with many unanswered questions. What should be the balance between markets and regulation? What is the optimal level of capital in the banking system? How can we minimise the risk of liquidity shortfalls? Should trading activities be separated from commercial banking? How should incentives be structured to promote sound risk management? Can financial innovation help to reduce financial risks? What do we do with financial institutions that are both too big to fail and too big to save? How should macroprudential policies be designed? 26. The Sim Kee Boon Institute can play a key role in advancing our understanding of these issues and providing thought leadership. The Institute has already published a number of interesting papers on topics ranging from securitisation to the effects of poison pills on corporate governance. I look forward to more insights from the Institute in the years ahead. We can expect nothing less from an Institute named after one of the pioneers of the Singapore Civil Service.
Sim Kee Boon helped to chart Singapore’s economic development through the turbulent 1970s, when stagflation and oil price shocks shook the world’s economies. We are living in even more interesting times today. 27. The Institute has gathered an impressive collection of talent here today. I wish you fruitful discussions. Thank you. 4  BIS central bankers’ speeches