, rather than focussing purely on the most profitable activities and market segments. 31. hong kong is a capitalist, free - market place. but the regulatory authority works not only for the industry but also for the public. and our population has a keen sense of community and fairness. 32. in the last 10 years, anyone concerned with public policy, corporate governance and business regulation has noticed rising expectations of good corporate citizenship. i took over as chief executive of the hkma just a few months after the sfc and hkma pushed through a solution to the lehman minibonds episode. i think everyone learned some valuable lessons from that. 33. one market segment we need to consider is the elderly and low - income retail customer. 34. some of these retail clients obviously have limited savings to deposit and limited banking 3 / 5 bis central bankers'speeches needs, and the reality is that they will not provide banks with much fee or interest income. however, the community expects banks to provide them with basic services, essentially on a pro - bono basis. 35. some of them have difficulties using technology, and cost - saving service - delivery channels such as atms, online banking or mobile device. we could try harder to persuade – or even compel – the elderly to adopt modern technology, in the name of efficiency or modernity. but as i say, hong kong is a compassionate community, and we need to be in step with those values. 36. we will probably need to consider a similar tolerant approach in future with small businesses that are perhaps slow to adopt e - payment systems. 37. that brings us to the overall segment of start - ups, and companies moving into hong kong. these clients have complained a great deal about the difficulty of simply opening corporate accounts. 38. these complaints were potentially affecting hong kong ’ s reputation as a welcoming place for business. we took this very seriously, and we believe we managed to sort out some of the underlying problems. 39. but this is a classic example of the dilemma we all face – as industry players and as the regulator. we do not want awkward due diligence and know - your - customer procedures. but we cannot accept the reputational harm and the other possible costs if one of our leading banks cuts corners and is then found to be handling funds from illicit activities. 40. this challenge – balancing risk – will continue. technology 41. perhaps the main possible solution to the problem of growing complexity is technology. and that brings me to

possible without the dedication, expertise and integrity of the hkma ’ s own management and staff. they are a credit to hong kong. 59. but at the same time, we could not have done it without the professionalism of all of you in the banking industry. so i would like to thank all of our friends in the hong kong association of banks and the hong kong institute of bankers. your constructive feedback and positive attitude to our relationship has made our mutual success possible. 60. as i say farewell, i trust that our collaborative relationship will continue, to the benefit of not only the banking industry but the whole hong kong economy and community. 61. i wish you all the very best for the future. thank you all very much. 5 / 5 bis central bankers'speeches