It is important, in seeking to restore returns, that banks and investors do not think in terms of “back to the future”. With less leverage and more liquidity in banks, required returns ought generally to be lower than prior to the crisis. Trying to offset that by taking excessive risk or evading regulation will not, I think, be tolerated in the new world. 6  BIS central bankers’ speeches
We are going to put grants to work – grants for any financial innovation in Singapore – on a competitive basis. Very importantly, we are going to develop the skills and capabilities required to make this a new wave, not just a passing trend. It requires many new skills, as well as some of the old instincts that help ensure sustainability across the cycles. And which preserve trust in finance. We have a major national program in Singapore called SkillsFuture which we are putting a lot of effort into. Finance will be an important vertical in SkillsFuture: investing in the skills of the future. Finally, we will ensure that the overall environment is supportive of start-ups and innovation. Not many of the new players will succeed, not many will last. But they will always leave an idea behind, to be modified, taken over or improved. Thank you very much. BIS central bankers’ speeches  3