11 Moreover, domestic banks that compete with foreign banks exhibit more interest in introducing new accounting standards and financial reporting requirements, so that better quality of information on the companies financed allows them to extend more profitable loans. Domestic financial institutions are becoming more efficient, due the new technologies and best practice provided to the market by foreign companies. Integration of financial markets worldwide enables better risk diversification. Residents do not have to invest their savings in their own country and thus they are not exposed to the business cycle risk. They are free to invest in many countries and could obtain a better ratio of expected return to assumed risk. Globalization of financial markets also entails new challenges and threats. The lack of transparency, resulting from asymmetry, raises the risk of speculative bubbles and herd behaviour of investors. Uneven access to information in the global markets environment may lead to a negative selection in the financing of the enterprise sector and the moral hazard in a situation where the bankruptcy of a given institution would jeopardize the banking sector. 12 Economic reforms and opening the country to international trade in the emerging markets attract foreign capital, which, however, in the case of deteriorating economic situation, is withdrawn quickly. This invokes FX crises, which, as a result of an increase in interest rates, may turn into bank crises. 13 Additionally, international links of institutions and the speed of transmission of information among markets streamline the spreading of such crises over other economies.
MAS estimates that there will be more than 9,400 new hiring opportunities for permanent roles in the financial sector in 2022 [4] . More than 3,000 jobs will be in technology. Software developers and engineers continue to have the highest demand, with more than 700 opportunities. They support a wide range of exciting activities, such as designing and developing digital finance services; applying blockchain technology in trade finance; and using artificial intelligence to detect fraud and money laundering. There will also be interesting new roles in sustainable finance. These range from execution of ESG transactions to advisory services and product development. Many of these jobs will draw on traditional finance expertise such as product structuring, risk management, reporting and pricing, but layered and infused with new knowledge on sustainability. The competition for talent is global. The skills in many areas of finance – especially technology and sustainability – are scarce everywhere. This is why supporting our financial institutions to access the talent they need to grow and thrive is a key priority for MAS. To continue growing as a leading international financial centre in Asia, we need a future-ready workforce – comprising a strong Singaporean Core complemented by a pool of deep and diverse global talent. Let me highlight our efforts in the two limbs of our strategy: first, growing a strong local talent pool; and second, attracting high quality global talent.