But I have to emphasise that one thing remains unchanged, and that is Singapore’s commitment to promoting the growth of the Asian Dollar Market, and the international business of banks based in Singapore. Establishment of Financial Centre Advisory Panel (FCAP) 26. Indeed, a strong partnership between the MAS and industry leaders and practitioners has been key to the development of Singapore’s financial sector, and how we got to where we are today. It will be even more important in the coming years, with changes accelerating in the financial world. 27. MAS will therefore strengthen its dialogue with the financial industry. We will set up a Financial Centre Advisory Panel (FCAP) comprising senior leaders from the banking,  1  For example, as a D-SIB, the foreign bank will be required to conduct recovery and resolution planning to reduce the potential for failure and promote their resolvability for an orderly winding-down. BIS central bankers’ speeches  3  insurance and asset management industries. The Panel will provide guidance in two broad areas: •  First, overall financial sector developmental strategies. Industry leaders and experts will provide advice on opportunities across the various financial activities, and propose initiatives to ensure continued vibrance in Singapore’s financial centre. This includes building synergies across different activities – for example, spurring the development of the capital markets by building on the asset management sector to catalyse equity, fixed income and FX trading activities. •  Second, we have to build deep skills and expertise relevant to the future and harness technology.
Would two loans of £ each to the same customer represent a higher level of activity than one loan of £ Methods for measuring FISIM at constant prices are based on conventions. In the UK, real FISIM is calculated by applying the base-year interest margins to an appropriate volume indicator of loans and deposits. The latter is estimated by deflating the corresponding stocks of loans and deposits using the GDP deflator. This method means that any volatility in the current price measure of FISIM caused by changes in interest margins does not feed into the real measure. (c)  Refining the measurement of FISIM  While the introduction of FISIM into the national accounts was an important step forward, it is not difficult to construct scenarios where the contribution of the financial sector to the economy could be mis-measured under this approach. A key issue is the extent to which bearing risk should be measured as a productive service provided by the banking system. (i)  Adjusting FISIM for risk  Under current FISIM guidelines, which use risk-free policy rates to measure the reference rate, banks’ compensation for bearing risk constitutes part of their measured nominal output. 2  4  1993 System of National Accounts, paragraph 6.128: http://unstats.un.org/unsd/sna1993/toctop2.asp. BIS Review 95/2010  This can lead to some surprising outcomes. For example, assume there is an economy-wide increase in the expected level of defaults on loans or in liquidity risk, as occurred in October 2008.