The position of consumers should be strengthened by making it easier for them to obtain information on the financial services they wish to use. They may also need better support from consumer complaints boards in the EU member states, to fight for their rights, where needed. General principles for regulation In this list of measures I would personally like to draw attention to the principle that the regulations necessary for the financial sector should be more general in nature and be based on aspects such as transparency and openness in access to different markets. This creates the right conditions for active competition and for market forces to efficiently adapt to new trends in the supply of and demand for financial services. More general principles for prudential regulation also improves the scope for higher efficiency in the supervision of financial institutions - for the institutions which are obliged today to report to many different authorities, as well as for the authorities themselves who can follow the same principles in all countries. Within the framework of clear rules that promote competition, there should be a general minimum protection for smaller consumers so that they do not risk being victims in the event of financial failures, e.g. in the form of a deposit guarantee for normal bank savings, and codes of conduct for operators on the financial markets to avoid abuse in the form of insider trading, etc.
Lastly and perhaps of most value to SMEs, is the insights that SMEs would gain from a better understanding of their financial deficiencies which lead to rejections of financing applications by financial institutions. This can be deduced from the analysis provided through the Bureau ratings and reports. The credit reports would also serve as a convenient tool for SMEs to carry out a self-evaluation to identify areas that need improvement and initiate adequate remedial actions to increase their competitiveness. SMEs are thereby empowered to improve their own profile, with correspondingly enhanced prospects for the SME sector as a whole. As I mentioned earlier, it is also encouraging to see a considerable turnout by financial institutions at this seminar. This underscores the sustained and growing attention by financial institutions in the SME sector that is critical to provide the enabling environment for the SME sector to thrive. Bank Negara has seen a paradigm change in the way in which financial institutions approach the business of SME financing. Banks have, and continue to invest significantly, in supporting SME financing niches, and the organisational changes that we have seen have been pervasive in many banks. These banks have acquired tremendous insights on effective strategies for successful interfaces with SME customers. In some banks, completely new business cultures for their SME segments have evolved as a result which bodes well for the SME industry.