This included powers to resolve non-viable financial institutions and powers to direct specific institutions running systemic risks to take measures to reduce those risks. These powers are in addition to the Bank’s regulatory and supervisory powers over banks and insurers. Having such powers is useful in a crisis. But the ability to operationalise them can be a whole different matter that requires greater attention to forethought and scenario-planning. Fourth, authorities need to increase policy agility. Every crisis or financial stability issue is different, and each requires a different policy response. The pressure will be on authorities to be able to respond to an infinite variety of problems, which are very rarely understood clearly at the onset, and which often evolve rapidly. Going forward, long-standing policy frameworks are likely to come under increasing pressure, simply because they are not built to respond to the intensity and pace of change taking place in the financial system. I believe the solution lies not in building new frameworks, but in strengthening institutional foundations which allow for more nimble frameworks to emerge. Such foundations include clear decision authorities, credible analysis to support decision-making, effective policy feedback loops and strong monitoring and accountability frameworks. Equally important is the ability to react to unplanned events given the inherent difficulties in predicting market behaviour, especially further out in time. Managing financial stability will ultimately require authorities to walk a fine balance.
The more inclusive process to global standard setting is therefore very much welcomed and needs to be further enhanced through continued open dialogue and support for implementation approaches that are more responsive to unintended consequences at a jurisdictional level. Today, the Bank will communicate its intention to extend the observation period for the Net Stable Funding Ratio, or NSFR, in Malaysia for another year to 2020. This takes into account the Bank’s intention to conduct further on-site assessments to validate the maturity and robustness of the liquidity and funding practices of banks, and uneven progress in implementation at the global level. 3/4  BIS central bankers' speeches  The Bank remains committed to implementing the NSFR requirements as part of overall liquidity standards applicable to licensed banks in Malaysia. At present, all banks maintain adequate liquidity buffers against short term liquidity stress, and the vast majority of banks already report NSFR levels above the minimum 100% based on observation data. Let me now draw my remarks to a close. The task of financial stability authorities is to prepare for the worst, and work for the best. There are rarely easy fixes to the issues that we face, but also no shortage of diverse experiences to draw from and to guide our path. It is my hope that this conference will serve to generate useful discussions that will help inform our own preparations to confront any eventuality, and strengthen our conviction that being prepared is better than being right.