Another is the augmentation of traditional microprudential supervisory work that analyzes individual institutions with efforts that take a wide-angle view of the banking industry. Supervisors look to identify common trends across institutions and emerging concentrations of risks that might pose systemic threats to the financial system. This broad view also allows supervisors to better identify sound practices among firms and incorporate them into supervisory reviews and the feedback provided in them. The Federal Reserve also has greatly expanded its surveillance efforts to financial markets outside of the traditional banking sector, such as the insurance industry and financial market utilities. These efforts are not confined to financial institutions per se, and reach a range of activities that might pose a potential threat to financial stability. For instance, staff members from the Chicago Fed are actively engaged in assessing the role of high-frequency computerized trading in securities and derivatives markets and associated risks that might arise with it. These are just a few examples of regulatory tools available to monitor and promote financial stability. And there are a host of other instruments in our toolkit, such as resolution plans, liquidity requirements and single counterparty credit limits. All are examples of improvements in supervisory practices aimed at reducing the likelihood of systemic disruptions and containing the impact should such disruptions occur. Conclusion To reiterate, I currently expect that low inflation and still-high unemployment will mean that the short-term policy rate will remain near zero well into 2015.

One example is our work with the Hong Kong Association of Banks in carrying out a comprehensive review of credit card practices in Hong Kong, drawing on reforms undertaken in the UK and US. As a result, we have been rolling out in stages 31 measures aimed at promoting fair and responsible business practices by credit card issuers, and all these will become effective by 2013. A second example is our partnership with the Financial Services and the Treasury Bureau and the Securities and Futures Commission to establish the Financial Dispute Resolution Centre. The objective is to help consumers settle monetary disputes quickly by means of mediation and arbitration. The Centre came into operation in June this year. 2  BIS central bankers’ speeches  The HKMA & consumer education On consumer education the HKMA has also been very active. From time to time, we publish articles, called “insight articles”, to increase consumers’ awareness of their rights and obligations in relation to particular consumer products like accumulators, Octopus cards and instalment payment plans. We also highlight key features and risks of certain investment products, and remind consumers not to invest if they do not understand a product. We have launched earlier this week a “Consumer Corner” on the HKMA website to provide important information on local banking consumer issues, including a set of “frequently asked questions” based on public enquiries and topical issues. As with protection, so with education, we are also working with our partners.