who is able to make lethal passes to the strikers to score goals, and at the same time organise and support the defence to consolidate the victory for the team. 12. like the mid - fielder in the soccer team, the corporate treasury function needs to be strategically located to support the front line business team in spots where they can strike business deals and where defence can be efficiently organise to handle the risks that may be encountered by the team. in the context of asia, there is a compelling case for mncs to set up corporate treasury centres in a financial centre where they can easily capture the china opportunities and where the key treasury functions can be organised efficiently. 13. this can be better achieved by the formation of a regional ctc to centralise the management of treasury activities which is essential for advancing operational efficiency, risk management and cost reduction. the business case is obvious and compelling. regional cash pooling reduces idle cash and transaction costs by standardising payment systems and centralizing foreign exchange management. cost of capital can be reduced by optimising external and internal funding. it can also optimize the corporate tax structure and compliance with international regulatory requirements to support global business expansion. 14. hong kong is keen to be considered by mncs as a location for setting up ctcs as we see huge benefits in becoming a ctc hub in the region. the cash pooling function of ctcs will enlarge hong kong ’ s liquidity pool and strengthen hong kong ’ s role as an international financial centre as ctcs are major users of financial services, capital markets and professional services. it is our goal to capture in particular the high value - added segments of the ctc value chain, including cash and liquidity management, corporate finance activities and financial risk management. by attracting more ctcs and corporate activities here, we will not only bolster our financial sector but also advance the development of headquarters economy in hong kong. 15. so the interests of mncs and hong kong are very much aligned. that said, we are fully aware that the competition to become the asian ctc hub is very keen within the region. there is a need to understand our competitive position, amplify our strengths and double our efforts in areas that we need to catch up. 16. for this purpose, the financial secretary tasked the hkma in 2014, with the assistance of consultants, to conduct a reality check on hong kong ’ s competitiveness vis - avis our competitors and to devise a strategy to promote hong

positioned to build and export regtech solutions to the rest of the world. 46. the white paper suggests developing a regtech skills framework. this framework will cover suitable modules and competency standards. and we would seek to identify the skills required for different roles and which would help speed up regtech adoption, and then we would help train and develop both new entrants and existing practitioners. 47. finally, on “ momentum matters ”. all our hard work will not bear fruits if the momentum for changes cannot be sustained. it is therefore crucial to keep the industry engaged in the years ahead. one suggestion is that we introduce a benchmark for our progress in increasing regtech adoption. this benchmark will provide us with a holistic framework that will enable us to visualise the success of our regtech initiatives. 48. that is a quick snapshot of the key recommendations in the white paper. in fact, we are already putting some of those recommendations into action. 49. for example, a flagship event is already planned for the first half of 2021. like this fintech week, that event will also use available technology to bring together delegates from around the world. so stay tuned for further details of the event. 50. also in the first half of 2021, we will be announcing details of our first regtech challenge. 51. and then looking ahead to the second half of 2021, we expect to set up the “ regtech knowledge hub ”. 52. around the same time, we also plan to release a regtech adoption index that will visualise our progress in increasing regtech adoption over time. in the meantime, we are also working hard to flesh out our thinking behind the other recommendations. for example, we would explore the benefits of providing appropriate incentives and other assistance to stimulate regtech solution innovation in hong kong. conclusion 53. so to conclude, i hope that through this presentation, i have sent a clear message to the audience that the value of regtech in banking is coming to the fore in hong kong. industry stakeholders should realise that regtech and its underlying technologies are the way of the future. 54. the hkma strongly believes that hong kong has the right foundations to support a thriving regtech ecosystem, and ultimately become a regtech hub. our city already enjoys broad fintech capabilities, strong support for technology businesses, a significant and wellestablished financial services sector, and most important of all, very supportive financial regulators. 55. we hope the white paper that the hk