http://ssrn.com/abstract=2783067 European Central Bank (May 2016), ‘Financial Stability Review’, https://www.ecb.europa.eu/pub/pdf/other/financialstabilityreview201605.en.pdf?e1a2bef79ed901d8ceaee004 f2fcecdd Financial Stability Board (2015), ‘Implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards: Fourth Progress Report’, http://www.fsb.org/wp-content/uploads/FSB-Fourth-progress-report-on-compensation-practices.pdf Rouch, David (2016). Written Standards and the Social Licence for Financial Markets. http://ssrn.com/abstract=2850885 Seagrave, Sterling (1995), ‘Lords of the Rim: The Invisible Empire of the Overseas Chinese’, New York, Putnam's Sons. 8  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  8

Chart 1 Gross Domestic Product (%) 8 6 4 2 0 -2 -4  Year-on-year change  -6  Quarter-on-quarter change, seasonally adjusted  -8 Q1/ 96  Q2  Q3  Q4  Q1/ 97  Q2  Q3  Q4  Q1/ 98  Q2  Q3  Q4  Q1/ 99  Q2  1  •  GDP – a rebound in the second quarter (in excess of 3%, quarter on quarter) after six consecutive quarterly declines (Chart 1)  Chart 2 External Trade $ 20 15 10  (% yoy) 28  Overall trade balance Imports of goods Exports of goods  21 14  5  7  0  0  -5  -7  -10  -14  -15  -21  -20  -28  -25  -35 1996  1997  1998  1999 2  •  External trade – exports picked up in recent months, with the overall trade balance remaining in a healthy position (Chart 2)  BIS Review 103/1999  2  Chart 3 Retail Sales (Seasonally Adjusted)  (% qoq) 8 4 0 -4 -8 -12 Q1/ 97  Q2  Q3  Q4  Q1/ 98  Q2  Q3  Q4  Q1/ 99  Q2 3  •  Retail Sales – clear rebound in the second quarter (7% increase, quarter on quarter) (Chart 3)  Chart 4 Tourist Arrivals  (’000) 1,200  1,000  800  600 96  97  98  99 4  •  Tourism – uptrend re-established (up by 11% in the first seven months of 1999) (Chart 4)  3  BIS Review 103/1999  Chart 5 Labour Market (%, 3mma) 7 Unemployment rate (LHS) 6 Employment growth (RHS) 5  (%, yoy) 7 6 5  4  4  3  3  2  2  1  1  0  0  -1  -1 96  97  98  99 5  •  Unemployment – off the peak, now at about 6% (Chart 5)  (Index) 125  Chart 6 Composite CPI (Seasonally Adjusted, 10/94 - 9/95 = 100)  120 115 110 Overall Core Core excluding rent  105 100 96  97  98  99 6  •  Prices – downward adjustment in CPI continuing, but the fall in core prices excluding rentals has levelled off in recent months (Chart 6)  BIS Review 103/1999  4  Chart 7 Hang Seng Index  (31/7/64=100) 17,000 15,000 13,000 11,000 9,000 7,000 96  97  98  99 7  •  Stock market – recovered almost all of its lost ground (Chart 7)  (1995=100) 180  Chart 8 Residential Property Price Index  160 140 120 100 80 96  97  98  99 8  •  Property prices – off the bottom (September 1998) and stable (Chart 8)  5  BIS Review 103/1999  Chart 9 Interest Rates  (%) 50  1-month HIBOR 40 Differential between 1-month HIBOR and LIBOR  30 20 10 0 -10 97  98  99 9  •  Interest rates – stability returned, and premium over the US Dollar interest rates has fallen to pre-crisis level (Chart 9)  (Ratio) 7  Chart 10 Loans Delinquency Ratio of Local Banks  6 5 4 3 2 1 4Q97  1Q98  2Q98  3Q98  4Q98  1Q99  2Q99 10  •  Non-performing loans – low (around 6%), still increasing but signs of levelling off in the second quarter (Chart 10)  BIS Review 103/1999  6  Chart 11 Mortgage Loans Delinquency Ratio  (Ratio) 1.4 1.2 1.0 0.8 0.6 0.4 0.2 Jun-98  Aug-98  Oct-98  Dec-98  Feb-99  Apr-99  Jun-99 11  •  Overdue mortgage payments – default ratio definitely levelling off since April (Chart 11).