But neither the markets nor the public was comfortable with the degree of secrecy on these matters in the past. •  It does, though, pose the question of what happens when a firm ‘fails’ a stress test. And at this point, I need to broaden these remarks to the international scene and how that is affecting our relationships with business. Part 3: Policy in a global setting •  This country believes in free trade and open financial markets. Our financial system is highly integrated with the global system. •  That means that some firms domiciled or operating in the UK are global, and many are international. Creates a huge need for a level playing-field internationally. That is a common interest of business and the authorities:  •  Business: want to be able to compete more or less anywhere on equal terms with local, indigenous firms and with international firms from other countries. •  Authorities: want good standards on top of that. Not only because we need them at home. The UK/London needs good standards abroad too: problems in the international financial system almost anywhere in the world will blow through London and the UK to a greater or lesser extent. And vice versa. Financially, we’re the opposite of an island. •  Up to a point we can mitigate that by measures such as HMG’s planned ‘ring fencing’ of retail banks, which has the effect of separating domestic intermediation from the entrepôt. But the non-ring-fenced banks matter for stability too!
Adnan Zaylani Mohamad Zahid: Sustainability and the challenges ahead Speech by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the IFN Green and Sustainable Finance Forum, Kuala Lumpur, 3 December 2019. * * * It is a pleasure to be here this afternoon. I would like to thank the organisers for once again inviting me to speak at their conference. I hope that I can further add to the valuable discourse that undoubtedly takes place at such events. We must now acknowledge, that the sustainability agenda has gained increasing importance and a momentum of its own. Everywhere, there is a sense of urgency and call for action. Consumers are making their purchasing decisions with the environment in mind. Investors and shareholders are making demands for their companies and corporations to adopt environmental, social and governance or ESG standards. Corporate managers, emboldened with such mandates by their shareholders are reshaping their organisations into new corporate citizens, responsible, responsive and socially aware. Governments are certainly not left behind. Globally, societies are seeking ways to create sustainable solutions for their communities. Achieving the sustainability goals will not be an easy journey. The global environment itself is more challenging than before with increasing volatilities and uncertainties arising from the global trade war, geopolitical developments and a multitude of factors. Many of these could derail or delay our efforts. How do we then stay on course to keep sustainability and responsible finance a prime focus of business in the financial sector?