as trade and commerce, tourism, hotel and ecommerce. the improvement of bankcard transaction environment will promote the development of relevant sectors such as telecom, equipment production and software design. according to the research on 50 countries whose bankcard industries are more developed, when the proportion of bankcard payment among aggregate consumption payment is increased by 10 %, gdp is to be expanded by 0. 5 %. second, lower social transaction cost. more frequent use of bankcard can reduce expenditure in the production, transportation and reserve of cash, and therefore improve economic efficiency. third, standardize market order. bankcard payment can automatically form payment record. the enhanced payment transparency can improve tax administration, increase tax revenue, control illegal income, prevent and curb corruption. fourth, improve social courtesy. bankcard is convenient, safe and clean, and it ’ s good to foster good payment habit and improve city image. the cyclical credit consumption function of credit cards can nurture honest habit, and promote social credit culture. currently, bankcard industry is confronted with good opportunities. china is trying to build a well - off society and has entered the stage of building a socialist harmonious society. the national strategy to boost domestic demand and stimulate consumption provides favorable condition for the development and innovation of bankcards. the set - up and improvement of the national credit database for individuals provides good credit environment, and we also accumulate lots of experiences. more importantly, the 11th “ five - year ” program proposes that we should actively develop financial service industry and raise the proportion and improve the performance of service industry, grasp core and crucial technology, to prompt its development and innovation. this will present new opportunities, and the bankcard industry will enter the consolidation and innovation stage. there are still some problems and challenges. first, the development of the acceptance market has become the bottleneck restricting bankcard sector. compared with overseas mature bankcard market, some indicators such as the consumption ratio for cardholders, the frequency of card use, and the number of merchants accepting bankcards all left far behind. currently, the accepting environment doesn ’ t reach the financial service level as an olympic host country. bankcards are mainly used to deposit and withdraw cash, which means the payment function doesn ’ t exert fully, and cash transaction remains a large proportion in retail payment. the acceptance market doesn ’ t develop in a balanced way, and in rural areas as well as in the medium and small - sized cities, the acceptance environment is weak, and the

the financial sector. under the negative list regime, the market access and business operations of financial institutions must also meet the qualification requirements and be conducted with licenses. there is no contradiction between the negative list management and the strengthening of interim and ex - post oversight, either. under the negative list mode, regulators can shift more resources from access management to interim and ex - post oversight to improve regulatory efficiency. second, we will coordinate and promote the opening - up of the financial service sector, the reform of the rmb exchange rate formation mechanism and rmb internationalization. the reform of the rmb exchange rate formation mechanism should aim at enhancing the flexibility of the rmb exchange rate and allowing the exchange rate to act as an “ automatic stabilizer ” in macroeconomic stability and balance of payments. the internationalization of rmb should be market - oriented. regulatory authorities should reduce the restrictions on the cross - border use of rmb. besides the market - based principle, we should also improve the support system for the use of domestic currency, which will in turn create more favorable environment and conditions for the market to play its due role. third, we will prevent risks while accelerating opening - up. we should intensify macroprudential management, implement more professional and effective financial regulation, establish sound “ firewalls ”, improve the capability of forestalling and defusing major risks, and align our regulatory competence with the level of opening - up. 2 / 3 bis central bankers'speeches in the new situation, based on our weaknesses and the demand for higher - level opening - up, we will further financial opening - up toward greater progress and provide strong support to the building of a new development pattern and high - quality economic development. thank you. 3 / 3 bis central bankers'speeches