A few examples of structural factors include a demographic shift from working-age to older population, which swells up the volume of pension funds that need to fulfill their obligation to retirees; the rise of sovereign wealth funds in the era of high international reserves under rigid exchange rate arrangements; technological innovation and the decline in telecommunication, transport and other financial transaction costs from credit risk transfer mechanisms; and, capital account liberalization that have over the years eliminated a significant degree of cross-border financial friction. At the same time, the liquidity glut is also due in no small part to accommodative monetary policy in advanced economies, whether one looks from the angle of low interest rates or high money growth. BIS Review 98/2008  5  the foreign exchange market. Both of these actions are accommodative from a monetary policy sense and tend to sow the seeds for inflation down the road. And in the case where capital inflows are persistent, the flows may even induce authorities to make use of prudential measures, which can range from credit policy to capital account restriction on short-term inflows. The core issue facing emerging market central banks in the short run, therefore, is how best to contain financial vulnerabilities that accompany the volatility of short-term capital. On this issue, when the challenge is on the side of managing capital inflows, there are three key decisions that emerging market policymakers must face in the short term.
Pembangunan pengguna yang lebih berpengetahuan juga akan memberi cabaran kepada institusi kewangan untuk mempercepatkan proses inovasi dan mempelbagaikan produk, perkhidmatan dan saluran penghantaran yang ditawarkan. Ini akan merangsang pembangunan sektor kewangan yang kukuh dan progresif, yang selanjutnya akan menyumbang kepada pertumbuhan ekonomi negara yang mapan. Dengan lafaz Bismillahirrahmanirrahim, saya dengan sukacitanya merasmikan pembukaan Biro Pengantaraan Kewangan di Malaysia. Terima kasih. 4  BIS Review 4/2005