The Bank is mindful that developments internationally on this front remain extremely fluid. Work is still in progress on the International Financial Reporting Standard for Insurance Contracts, the Solvency II initiative in the European Union, and the development of cornerstones for solvency assessments by the International Association of Insurance Supervisors. The Bank will therefore continue to maintain an open consultative approach in proceeding with this initiative to preserve our ability to respond appropriately and to ensure its smooth implementation. Going forward, greater attention will be given to market conduct issues, which recent experience in other markets has shown to be an increasingly important factor in promoting confidence in the insurance and takaful industries. Financial markets cannot operate efficiently and effectively unless market participants act with integrity. This needs to be reinforced with adequate information to consumers and investors to make informed decisions. In today's information era, the business environment has changed dramatically, and with it, the expectations of consumers and investors have also increased. The industry needs to adapt accordingly. Policy initiatives by Bank Negara Malaysia in the area of market conduct will continue to focus on achieving complete, true and plain disclosures to consumers, thereby equipping consumers to make informed decisions essentially through consumer education initiatives, and ultimately, promoting the fair treatment of policyholders. In this connection, I am pleased to announce that after more than two years of extensive discussions with the industry, the revised Guidelines on Medical and Health Insurance Business have now been finalized.
·  While facing a financial crisis, the IMF could indicate the relative contributions of official finance and private sector finance as well as the domestic economic adjustments required to fill the gap. Before disbursing its share of financing, it should review and assess the country’s efforts to secure the contributions from private creditors required to ensure medium-term sustainability; failing to secure the needed contribution from private creditors could lead to a revision of the program to require additional domestic adjustment. Changes in the functioning of financial markets in the recent years also raise important issues that the international community may have to address. There is no need to underscore how much financial markets have changed in the last two decades under the combined impact of factors such as financial deregulation, technological and financial innovation, intensifying competition among financial institutions and increasing demands for more transparency and greater profitability. These changes have enhanced the overall efficiency of financial markets and, by extension, that of the developed economies: -  Markets have become more transparent and competitive. -  Financial innovations have made it easier for both governments and the corporate sector to raise capital or hedge risks. -  Economic agents with funds to invest, in particular households, can choose from a wider range of investment vehicles offering better returns. -  Growing disintermediation has contributed to less inflationary financing of economies. Despite all these achievements, there have been some surprising developments on financial asset markets.