circumstances but also by changing public expectations. this brings me to my third observation : that banks and financial institutions ( and, it might be added, regulators ) are now operating in a more sceptical, more demanding, even hostile environment. we see this around the world, and, particularly in the aftermath of the lehman brothers collapse, we have seen it in hong kong. there is also discontent and anxiety locally that pre - dates the crisis – for example, about access to banking services, about the risks of new technology – that result partly from the changing business landscape and partly from changing expectations. we must expect this trend to continue, and it will be necessary for the banking industry and the regulator to take more and more account of wider public opinion, and to tackle areas of concern. as the industry organisation, hkab has already become quite deeply involved in such matters : for example, it has played an important co - ordinating and think - tank role in ensuring the safety and efficiency of e - banking, and in promoting accessibility to banking services, particularly among vulnerable groups ; it is also one of the joint issuers of the code of banking practice, the reference - point for relations between banks and their customers. hkab can, i believe, contribute even more in the future, and consolidate its role as industry representative, by strengthening its resources, for example by creating a separate secretariat with a professional chief executive. one of the key causes of the recent financial crisis was the use – or abuse – of innovation by financial intermediaries for short - term private gain at the expense of longer - term stability and effective working of the financial system as a whole. and one of the reactions to this has been a call – a very loud call in some places – for banks to go “ back to basics ” in conducting their business. if such a reaction were to lead to a return to the sort of inflexible banking services many of the older among us remember, then this would be a pity. if, on the other hand, it were to result in greater reflection and rethinking about the true function of banking in society, then this would, in my view, be a healthy development. at the heart of such thinking must be the view that the banking system exists to provide financial intermediation in support of the larger economy : it cannot be some abstracted, disembodied realm of activity in which intermediaries compete with each other to dream up ever more

fail to see the opportunities or build the infrastructure to make the best of it, would be to risk marginalisation. there is no shortage of awareness of this point, whether at the policy or the technical level within the government. at the practical and business level, the banks also have a role in making use of the channels that are opened up : it is gratifying to note that banks are playing their role effectively and with enthusiasm. ladies and gentlemen, monetary authorities and bankers come and go. but i have no doubt that hkab and hkib, and the spirit of co - operation that they embody, will go on for ever. i have no doubt that you will continue to promote the prosperity of hong kong and the wellbeing of all who live here for many years to come. i wish my successor, norman chan every success, and all of the happiness that i have enjoyed as monetary authority. as for myself, in two days'time i shall move from this very public role into the role of private citizen, with all of the pleasures and responsibilities that entails. this is an unfamiliar, possibly challenging position for me. but i have never been known to decline a challenge, and i look forward to the freedom to plan my own days and see more of family and friends, many of whom are here this evening. i wish all of you the very best of health, happiness and success.