Finally, as a corollary of the above, micro- and macro-supervision should not be done in silo. In fact, we need to bring together the perspectives and tools from different stakeholders – central banks and financial supervisors, as well as government agencies that can contribute to financial stability. The property sector cooling measures introduced in Singapore and a number of Asian countries recently, involved close cross-agency cooperation and coordination amongst financial regulators, fiscal authorities and the land  BIS Review 121/2010  3  offices of the respective countries. Bringing together the various agencies expands the policy options to deal with systemic risks. Different countries have different institutional arrangements, so each country will need to decide on the optimal arrangements. Achieving regulatory outcomes through effective supervision and shared responsibility with industry 23. Let me now say a few words on achieving regulatory outcomes, beyond good rules. Perhaps the most striking area is the critical need for all of us to strengthen supervision. Effective supervision is unapologetically firm and intense, grounded on a good understanding of the nature of the institutions and the financial system. Supervisors must think independently, avoid regulatory capture and be willing to enforce out-of-bound markers rigorously. In this regard, I welcome the efforts of FSB and standard setters in developing recommendations for more effective supervision of complex and systemic institutions. 24. Effective supervision requires talented and trained staff, who can understand and respond constantly to new markets, new services, and new risks.
These first set of parameters for core capital has been carefully calibrated after considering the conditions in the various economies, as well as the results of  BIS Review 121/2010  1  the bottom-up Quantitative Impact Studies and the top-down macroeconomic impact of the proposed changes. The phase-in arrangement for the new benchmarks strikes an important balance between strengthening the financial system and supporting economic recovery. Singapore supports the Basel Committee’s reforms, and the further work to be done. 9. Going forward, our key challenge is to ensure robust implementation of these new capital standards. In an interconnected global system, major problems in one part of the system will eventually affect us directly or indirectly, through various channels. All economies, whether advanced or emerging, and whether they had a direct banking crisis or not, have therefore a shared interest in strengthening the resilience of the global financial system. 10. However, as we phase-in these measures, we need to be vigilant that these do not have unintended consequences on credit availability and economic growth, or in reducing diversity in the financial system. 11. In striving towards a convergence in regulatory standards in order to preserve a level playing field across jurisdictions, we should be cognizant that the starting conditions and future challenges of countries differ. For many emerging economies, their priority lies not in re-capitalising banks or reducing leverage, but in continuing the reform of the banking system and in developing deeper capital markets to support future economic expansion.