The practical way is to ensure that you are moving up each step you take, in other words making improvements, regardless of whether you are following a spiral or a zigzag path, or whether you can see the top, or the point where allocation of resources is optimal. Appreciation of this concept is essential in understanding developments in the Mainland of China, including those on the financial front. The preponderance of the banking sector in domestic financial intermediation calls for great care in the reform of the banking system, in a manner that does not undermine public confidence in the banking system. This means the continuation of state ownership and financial support, and, for the time being, de facto limited competition from foreign banks, notwithstanding WTO commitments. On the other hand, there is a strong desire to modernise management and move towards the observation of international standards, to facilitate the ongoing commercialisation and the eventual privatisation of the banks. This is a delicate process, particularly when, in terms of the prudential numbers, the banking system is clearly weak and, with the greater freedom of information that comes with modern information technology, depositors’ faith will not remain unwavering forever. The drive for diversification in financial intermediation, evidenced in genuine efforts to develop the debt and equity markets, will further divert funds away from the banking system.
It is only right that we continue to capture these recollections and stories of Governor Ismail Ali and therefore, the Bank will publish a Second Edition of this book. It is our hope that the vision, dedication and resilience of Governor Ismail Ali would inspire our future generations, be it central bankers or not – and to prepare them as they partake in the dynamic financial ecosystem. This book chronicles, not just who he was and what he did, but also what Governor Ismail Ali stood for and what he envisioned for this country. It is said that there are two things parents should give their children: one are roots, and the other are wings. As the first Malaysian Governor of Bank Negara Malaysia, Governor Ismail Ali planted the principles that now run deep within the Bank and gave us the vision to soar towards. As guardians of the financial system, central bankers must maintain public trust. Not only does a 1/3  BIS central bankers' speeches  central bank need to be careful custodians of monetary policy and an able adviser to the Government, we need to be seen and recognised as the competent authority to discharge these roles. A central bank needs to engender confidence. Governor Ismail Ali’s immutable emphasis on the integrity of the Bank’s moral compass and the strength of our competency stems from a sense of duty, Amanah.