between savers and investors, or if it leads to cross - jurisdiction establishment of subsidiaries and branches, the nature of credit risks facing financial institutions may also change. exposures to different business cycles will increase as will exposures to different sources of idiosyncratic risk. supervisory agencies need to make sure that appropriate risk control measures are implemented in individual institutions, and that their capital adequately reflects the market, credit and operational risks they are exposed to as they enter foreign markets. 22. here in hong kong we are well on our way to implementing the latest international standards in this respect, i. e. the basel ii standards. as the bank supervisor, the hong kong monetary authority has been working with banks and legislators to ensure that we are able to implement the new standards by 1 january, 2007. we have also been working with other regulators in the region through the emeap working group on banking supervision to share our experiences on the implementation process. 23. ladies and gentlemen, i have given you a brief personal perspective on financial integration and regulation in our region. i do not know whether i have convinced you of the importance of these topics for our continued economic prosperity and financial stability. but i certainly hope to have persuaded you that they are topics that deserve our attention whether we are policy makers, regulators of the financial system, or members of the private - sector financial community. i am sure that more will be said about these topics throughout the conference, and i look forward to hearing from our european colleagues about the experience in europe concerning financial integration and regulation in the euro area.

peter pang : developing critical financial infrastructure between hong kong and thailand opening remarks by mr peter pang, deputy chief executive of the hong kong monetary authority, at the hkma - bot joint press conference on the launch of us dollar – thai baht pvp link, hong kong, 28 july 2014. * * * deputy governor, ladies and gentlemen, 1. good afternoon. it is my great pleasure to welcome you all to this press conference jointly organised by the hong kong monetary authority ( hkma ) and bank of thailand ( bot ). i would like to thank deputy governor mr. krirk vanikkul for joining me here to announce the launch of the payment - versus - payment ( pvp ) link between bahtnet, the thai baht real time gross settlement ( rtgs ) system in thailand, and the us dollar rtgs system in hong kong. 2. time flies. about a year ago the hkma and bot announced in bangkok to build this pvp link. with the concerted effort of colleagues on both sides, the link went live today as scheduled, after completion of the system development and meticulous testing with the users. the banks in both jurisdictions have been fully engaged to ensure maximum readiness, on both technical and business fronts, for the launch of the link. 3. this pvp link is an iconic project that symbolises the determination of the hkma and bot to work together to promote financial integration and financial stability in the region through the linkage of critical financial infrastructure. it will bring significant benefits in three areas. 4. first and foremost, this pvp link will help eliminate settlement risk in us dollar - thai baht foreign exchange ( fx ) transactions. prior to this link, the settlement of the two currency legs was done in different time zones and in an uncoordinated manner – thai baht ( thb ) in the asian time zone, followed by us dollar ( usd ) during new york hours. with the new pvp link, all payments can be made within the asian time zone and in a coordinated manner by adopting the pvp mode. under this arrangement, when a thai bank delivers ( or receives ) thb to ( or from ) its counterparty in bangkok, the correspondent bank of the thai bank in hong kong receives ( or delivers ) usd at the same time. hence, the risk due to time lag in settling the two legs of the fx transaction can be removed. 5. second, the reduction in fx