The Third Plenum blueprint shows that Chinese policymakers are keenly aware of what needs to be done to foster a dynamic, market-based economy. BIS central bankers’ speeches  5  •  Their track record managing the rapid growth and transformation over the last three decades augurs well. •  And as they gain in confidence implementing reforms and as their economic institutions strengthen, they will grow in their willingness to accept the vagaries, fluctuations, and diminution of central control that are inherent in a market economy. The next chapter in the China growth story has only begun. 6  BIS central bankers’ speeches
Zeti Akhtar Aziz: The nature of risks involved in dealing with OTC financial derivatives Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the 4th Banking and Financial Law School Seminar, Kuala Lumpur, 19 February 2004. *  *  *  It is my great pleasure to be here at this 4th Banking and Financial Law School in light of developments in the global and domestic financial markets. We are in a period of great change. As the pace of globalisation intensifies the global environment has been marked by greater volatility and uncertainty. As a consequence we are often dealing with probabilities. The process of globalisation has resulted in international capital movements and developments in the global financial, and regulatory arena that have had significant implications on domestic financial institutions. There is therefore a need for a global perspective in effectively managing these risks. The universal application of ISDA Master Agreements is a demonstration of the need for globally oriented solutions. This morning my remarks will focus on the need to appreciate the nature of risks involved in dealing with OTC financial derivatives, both by the market and the regulators. I will also touch briefly on the opportunities emerging in terms of developing derivatives within Islamic banking and finance. Financial institutions, as the linchpin for the process of financial intermediation, have a crucial role in facilitating the flow of capital to areas where it can be most productively used.