The importance of monitoring systemic risks and putting in place an effective response mechanism has indeed been one of the major lessons learnt from the crisis. The cost in terms of the destruction of wealth of being inadequately prepared from a macro-prudential regulation point of view is still today being counted. The contribution of financial stability to sustained economic growth should clearly not be underestimated. The fact that Malta’s financial system has not been directly affected by the global crisis should not, therefore, give rise to complacency. No jurisdiction can be totally immune from systemic shocks, whether of domestic or external origin, or from contagion. Both the MFSA, from their regulatory and supervisory perspective, and the Bank, from a financial stability perspective, are acutely aware of the need to preserve confidence in our financial system. Our co-operation, which is institutionalised through formal arrangements, has to date worked well. Indeed, apart from regular meetings of the Standing Committee envisaged by the Memorandum of Understanding, we also cooperate through the Domestic Standing Group that brings together the Bank, the MFSA and the Ministry of Finance, the Economy and Investment in a forum for crisis management. This mechanism was first tested in 2007 when the financial crisis was about to erupt, and that experience highlighted the importance of coordinated and timely action and of the Ministry as a key player in times of financial instability. Another notable example of coordination between the Bank and the MFSA concerns stress testing.
We strive to keep our markets pro-business and to keep operating costs competitive. Being cost-competitive is not sufficient by itself. We need to make sure that Singapore continues to stay at the confluence of business opportunities. To facilitate business reach into major markets, Singapore has signed a series of Free Trade Agreements with many of our trading partners include the US, India, Japan, Korea, Vietnam as well as beginning free trade discussions with China and the Gulf countries. I am certain these strong ties that Singapore has built can only facilitate Deutsche Bank's business expansions in this part of the world. BIS Review 15/2007  1  Conclusion On that note, let me again extend my heartiest congratulations to Deutsche Bank on its 35th Anniversary in Singapore. We appreciate your commitment to Singapore and hope that Singapore will continue to play an important role in your growth in Asia and the world. Thank you. 2  BIS Review 15/2007