in proprietary trading or acquiring an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund. in october, the federal reserve joined the office of the comptroller of the currency bis central bankers ’ speeches ( occ ), the federal deposit insurance corporation ( fdic ), and the securities and exchange commission in seeking public comment on a proposal to implement the volcker rule. the commodities futures trading commission issued its substantially similar proposal for comment shortly thereafter. because of the importance and complexity of the issues raised by the statutory provisions that make up the volcker rule, the federal reserve and other agencies provided the public with a 120 - day opportunity to submit comments. the comment period is now closed, and nearly 19, 000 public comments were received. the agencies are now working together to review and consider these comments and put final implementing rules in place as soon as practicable. in april, after consultation with the other agencies, the federal reserve issued guidance on a volcker rule conformance period that was intended to help limit any confusion about when banking entities will need to comply with the final rules once issued. the federal reserve ’ s statement clarified that a banking entity has the full two - year period provided by the statute ( i. e., until july 21, 2014 ), unless that period is extended by the board, to fully conform its activities and investments to the requirements of the volcker rule, including any final implementing rules adopted by the agencies. prudential supervision of large financial firms in the wake of the dodd - frank act, the prudential supervision of the largest, most complex financial firms remains a cooperative effort. as before, the law mandates that a variety of federal and state supervisors execute particular supervisory and examination responsibilities for certain parts of a firm. this allocation of supervisory oversight among different agencies reflects, among other factors, the historical development of various types of financial intermediaries in the united states and a series of legislative decisions about regulatory and supervisory structure. as the regulator and supervisor of bank holding companies, the federal reserve ’ s role in this statutory arrangement is typically that of consolidated regulator and supervisor of the parent holding company. accordingly, our supervisory program for such firms generally takes a broad view of the activities, risks, and management of the consolidated firm, with a particular focus on the capital adequacy, governance, and risk - management practices and competencies of the firm as a whole. many of the principal business activities of the largest financial

hu xiaolian : law on real rights of the people ’ s republic of china speech by ms hu xiaolian, deputy governor of the people ’ s bank of china, at the symposium on judicial interpretation of law on real rights, beijing, 27 may 2010. * * * i am delighted to attend the symposium on judicial interpretation of the law on real rights of the people ’ s republic of china organized by the supreme people ’ s court and the people ’ s bank of china with the support of international finance corporation. we have gathered here today to discuss the experiences of reforming the legal system on security interest, security interests in personal property and innovative practices on warranty of titles, so as to promote the drafting of judicial interpretation of the law on real rights part four on security interest. secured credit accounted for more than 80 percent of china ’ s aggregate credit. therefore, reform and innovation of legal framework concerning security interest is an important part of financial infrastructure. security interest in personal property is one of the most frequently discussed area in property law system and it is closely related to economic development and restructuring. based on the four pillars of an ideal framework of security interest in personal property, namely wide range of eligible collateral, a centralized registration and public display system, well - defined rule of priority and streamlined process for implementation, the pbc put forward 8 proposals, i. e. making account receivables and inventory eligible collaterals, establishing a floating charge system, protecting bona fide purchase, expanding party autonomy, defining the rule of priority in a clear - cut manner, designating the institution for the registration of account receivables, defining the principles for the registration of floating charge and rules for the registration and charging of security interest, which have already been written into the law on real rights enacted on march 16, 2007. the launch of the law on real rights is of great significance to the development of the credit market, prevention and mitigation of financial risks and easing the financing difficulties of smes. sme financing is a worldwide challenge, and it is more difficult in developing countries. out of multiple problems such as large smes ’ exposure to operational risks and lack of financial transparency and banks ’ difficulties in managing lending to smes, the lack of legitimate collateral is the real bottleneck. approximately 70 percent of the credit collateral received by commercial banks in china is real estate, while more than 70 percent of the assets of smes are account receivables and inventory. it was estimated