thereby reducing the use of major reserve currencies? the final issue is the international use of renminbi. although the renminbi's share in global foreign reserves, cross - border payments and foreign exchange transactions has been increasing in recent years, it still only accounts for less than 3 % as a global payment currency according swift data. this is notwithstanding the fact that china is already the world's second largest economy and the largest trading partner for over 140 countries and regions. of course, the international acceptance of the renminbi is largely driven by market forces, but are there things that policy makers can do to promote greater use of renminbi in their own markets? how can countries make better use of other offshore renminbi hubs like hong kong in accessing renminbi products? i believe this is also another area which you all can explore deeper in this workshop. i am glad to see that many of the issues i raised just now will be covered in the programme. i would like to thank you all for joining this workshop, particularly those coming from overseas. before i end my remarks, let me do a bit of advertisement. this is a special year for the hkma as we have just celebrated our 30th anniversary. we will have a busy event season in hong kong later this year : 2 / 3 bis - central bankers'speeches in october, the hkimr will host its annual international conference for the chinese economy, which has been our flagship event for the last thirteen years. the theme of this year's conference is " china's economic development in a changing global environment ", focusing on many timely and topical issues facing the chinese economy. please stay tuned for more details. in november, we will host our second global financial leaders'investment summit, followed by a joint hkma - bis high - level conference marking also the 25th anniversary of the bis representative office for asia and the pacific. last but not least, for those coming from abroad, i hope you will also find time to do some sightseeing and see the dynamic and vibrant life of hong kong. thank you. i wish the workshop a great success, and enjoy the workshop! 3 / 3 bis - central bankers'speeches

routinely used to address cyclical risks to financial stability, and that moretargeted micro - and macroprudential tools should be used to address these risks. i agree that targeted prudential policies should be the first line of defense against threats to financial stability. however, because their effectiveness in practice is not yet proven, i would not rule out the possibility that monetary policy could be used directly to support financial stability goals, at least on the margin. identifying and addressing structural forms of systemic risk i want to turn now to structural sources of systemic risk and discuss how macroprudential policy can be used to mitigate them. structural vulnerabilities may go largely unnoticed until they are exposed in financial crises – and at considerable cost. indeed, many of the regulations now being implemented under the dodd - frank act, as well as the international agreements relating to bank capital and liquidity standards, are a reaction to the events of 2007 through 2009. such responses include regulations and reforms that address risks resulting from the existence of sifis and systemically important financial market utilities ( fmus ) as well as other efforts to improve the resilience of important financial markets and infrastructure. because the material distress or failure of a sifi can have outsized effects on the financial sector and the real economy, the dodd - frank act empowers the federal reserve to reduce the probability of such events through tougher prudential standards, including enhanced riskbased capital and leverage requirements, liquidity requirements, an early remediation regime, and restrictions on activities. the act also requires the federal reserve to consider systemic risk effects when reviewing and ruling on applications for mergers among financial firms. in addition, to ensure that the failure of a sifi can occur without serious damage to the financial system, the act gives the federal reserve and the federal deposit insurance corporation new tools, such as improved resolution planning by firms and an orderly liquidation authority. the act also requires centralized clearing of standardized over - the - counter ( otc ) derivatives and introduces margin requirements for noncleared derivatives and other measures to strengthen the integrity and functioning of financial markets. efforts to develop these rules have been progressing well. the federal reserve will soon release for comment its proposed rule on enhanced prudential standards that would apply to large bank holding companies and systemically important nonbank financial firms. it also bis central bankers ’ speeches recently approved a final rule implementing the resolution plan requirement. let me note that in these instances, as in