that there are still hidden external uncertainties. we should continue to pay attention, stay vigilant and exercise our prudence. we should be well prepared to take on the risks and adverse effects arising from external environmental changes. they may inflict harms on our economy and financial system. as the financial regulator, amcm keeps supervising banks operating in the msar so as to maintain security and stability of the macao financial system. all along, our supervisory work has had the support and coordination of friends of the sector. as such, i duly represent amcm to express our candid appreciation to our practitioners for their support and cooperation and their incessant endeavour in maintaining the financial stability and healthy development of macao. looking forward, amcm will implement its duty in accordance with the legislations to maintain the stability and security of the system, continue to enhance the financial regulations to cope with the needs of market development and alignment with international supervisory requirements. on the other hand, it will prompt the industry to further develop by actuating its practitioners. it will actively participate in regional financial cooperation, particularly the deepening guangdong - macao financial cooperation, with a view to exploring wider business scope and higher innovative vision. in this way, we can further exploit our bis central bankers ’ speeches special features and competitive edges to realize our own growth and development while contributing to the continued stability and prosperity of the macao financial sector and promote appropriate diversification of the economy of macao. again, i duly represent amcm to wish you progress in the year of the snake, good health, prosperous business and happy family. thank you. bis central bankers ’ speeches

and lopsided economic structure. as such, our financial innovation effort is restrained by inherent factors. nevertheless, all along, we have been actively promoting financial innovation in line with the needs of economic development which can simultaneously maintain the sustainable development of the financial industry in a stable and sound manner. being an operator, the local financial sector has been remarkable in financial innovation. in the past few years, we have witnessed the emergence of various types of financial products, ranging from telephone banking, mobile banking, online banking, investment fund, bankassurance, personal banking, private banking to privileged banking services. being a regulator, we allow adequate freedom to financial enterprises by adopting appropriate measures to innovate our system. to cope with actual market environment, we revise or relax enforcement of certain regulatory requirements subject to the premise that there is a thorough understanding of risk management capability of the sector. furthermore, we continue to enhance our regulatory practice by conducting onsite investigation for a specific purpose. we gather thorough knowledge of a certain facet within a relatively short time span. upon completion of the investigation, we share mutual findings with the inspected institutions in a timely manner with minimum disruptions to the their daily operation while they all stand to benefit. being a facilitator, we organize activities for the industry participants to cultivate business opportunities locally and overseas through cross - border exchange and cooperation via various channels, especially liaisons with our regulatory counterparts and arrangements with other governments. in comparison, the mainland market is boundless. the government is easing control on financial regulations as reform of the financial system is moving forward on all fronts. the pattern of economic development and household consumption is changing while the mainland economy continues to grow rapidly. regional and global economic integration is gathering steam. development in the securities market and the pervasiveness of renminbi carries profound implications. the combined effect of all these forces has not only contributed to the establishment of a solid and sound foundation conducive to financial innovation, it has also brought creative opportunities for financial innovation to the regions that are closely connected with the economic and financial development of the mainland. the pan - pearl delta region, 9 provinces and 2 special administrative regions are vast in area, each has its own competitive edge and solid economic strength. their governments, business sectors and residents have comparatively better knowledge about finance. against this backdrop, there is a great future for financial innovation. although i have mentioned earlier that macao has limited experience in this respect, i would like to