In other words, the problem is often not so much about the “people” or the “bad apples”, but the “bad barrels” – that lead to shocking behaviour. The ethical challenge for us as leaders in the corporate and public sectors is to build this conducive culture. The need is to cultivate the situational environment and broader system that encourage genuine professionalism and integrity of the people in the system. Let us focus on these three elements of (a) system; (b) situation; and (c) people. (a) System Let us begin at the highest level, the system. This represents the values and assumed beliefs that underpin an organisation and the financial sector in general. The baseline standards of 2/5  BIS central bankers' speeches  acceptable conduct and behaviour are articulated formally through laws and regulations. In Malaysia, the legal and regulatory frameworks for the financial sector are stewarded by Bursa Malaysia, Securities Commission Malaysia, the Companies Commission Malaysia and Bank Negara Malaysia. Various efforts have been, and are, taking place on the professionalism and integrity fronts. The Bank recently issued the enhanced corporate governance standards for the financial sector – calling for a culture that reinforces ethical, prudent and professional behaviour. I understand that the Securities Commission is currently finalising a revised Malaysian Code on Corporate Governance which will be applicable to Bursa-listed firms. Just this month, a Code of Conduct for the Malaysian Wholesale Financial Markets was issued by the Bank.
I need not stress that these movements are negative for our recovery prospects and, in general, for an economy such as Spain that is increasingly integrated into the global framework and which in recent years has notably improved its competitive capacity abroad. The United Kingdom’s departure from the European Union is, in my view, a negative phenomenon, although the results in recent European elections appear to indicate a brake on or at least a re-drawing of the lines marking these trends. In any event, in the euro area – where our economy operates – it will be very important to maintain the goals of integration into the financial and banking area and to address the capital markets union project. But it is important, too, that the achievement of a true economic union may go beyond the financial realm. Along these lines, our Annual Report refers to the discussion of possible ways forward towards a fiscal policy that includes common stabilisation elements within the euro area, in a setting, such as the present, in which the high levels of public debt restrict the budgetary room for manoeuvre in a good number of countries. Progress here would contribute to equipping fiscal policies within the area with greater strength and, therefore, to minimising the potential adverse repercussions – economic and social alike – of future crises. Thank you for your attention. 8/8