Ravi Menon: ASEAN financial integration – where are we, where next? Keynote address by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the ASEAN Banking Council Meeting, Singapore, 12 June 2015. *  *  *  Dr In Channy, Chairman, ASEAN Bankers Association Mr Samuel Tsien, Chairman, Association of Banks in Singapore Ladies and gentlemen, good morning. ASEAN banks have performed well over the last two decades since the Asian Financial Crisis. Asia’s economies and financial systems, including those in ASEAN, generally held up well during the Global Financial Crisis. The near term economic outlook for ASEAN will be shaped by two themes: the ongoing recovery in the G3 economies and the slowdown in the Chinese economy. Barring shocks, overall growth in ASEAN should remain firm this year, at about 5%, not spectacular but very respectable considering the state of the global economy. Macroeconomic conditions are therefore supportive of banks in ASEAN. There are, however, downside risks they need to watch. •  The divergence in monetary policy settings among the G3 economies could pose risks to financial stability that could also potentially hurt growth. •  The anticipated normalisation of interest rates in the US against continuing quantitative easing in the Eurozone and Japan is already causing sharp movements in exchange rates and bond yields. The scenario of a “double whammy” posed by a rise in US interest rates and a strong US Dollar could expose vulnerabilities among some ASEAN borrowers.
What Do We Do to Get to a “Good” Culture? 1/3  BIS central bankers' speeches  The second thing is we need to understand what contributes to a good culture, and what allows a bad one to flourish. What fosters an organizational culture where people feel empowered to speak up? And what leads to a work environment where employees feel emboldened to commit fraud? That’s one of the things I’m most looking forward to in today’s conference. I can’t wait to hear the insights from such a variety of voices. Looking beyond our own narrow frame of reference to other fields of study, like organizational psychology, will help us understand how to achieve the progress that’s so desperately needed. Behavioral science really gets to the root of how human nature interacts with an organization’s processes. Everything from how we set goals to how we motivate our staff to achieve those goals has an effect on culture, for better or for worse. This is where the rubber hits the road for most organizations, in the financial services industry, and beyond. We’re also going to hear from experts on the role technology plays, including the ethics of data handling, and what artificial intelligence means for relationships with customers. And I’m particularly looking forward to hearing about how diversity, something that’s a strategic priority for me and this Bank, affects cultural norms. This includes diversity not only in terms of race and gender, but diversity of thought and experience, which also affects an organization’s culture and decision-making.