to 2017. unlike monetary policies, there has been far limited literature on how macroprudential measures should be calibrated with respect to changes in asset price levels. the complex dynamics underlying the property market in hong kong has made it very difficult, if at all possible, to develop an ex ante framework governing how the hkma should operate its macroprudential policies. so, what we have done is to tread extremely carefully in each round of adjustment. the hkma has established a cross - departmental committee to regularly review whether the prevailing macroprudential measures would need to be adjusted, taking into account a host of factors including the property price trend, transaction volumes, domestic economic fundamentals and the external environment. the committee is chaired by the chief executive of the hkma and comprises members coming from multiple functions including monetary management, banking supervision, research and macro surveillance. 1 / 3 bis central bankers'speeches 6. some commentators have criticised the hkma ’ s macroprudential measures as being ineffective because they have not been able to arrest the rising trend of property prices. this is a misunderstanding of the objective of the hkma ’ s macroprudential measures. the objective of the hkma ’ s measures is not to tame property prices. instead, they are aimed at strengthening the risk management of banks and thus safeguarding long - term banking stability. in this regard, it is worth noting that the average ltv ratio of new residential mortgage loans has been consistently lower than 60 % while the average debt servicing ratio of new mortgages has been consistently lower than 40 %, suggesting that the banking system has built in buffer to safeguard its resilience. 7. competition dynamics : mortgage products in hong kong are homogeneous, in the sense that from the mortgagor ’ s perspective it makes little difference which bank is offering the mortgage facility. there is therefore a strong tendency for banks to compete for market share by lowering their underwriting standards. with the macroprudential measures in place, however, banks can compete for mortgage business only in terms of pricing ( e. g. mortgage rate ). against a backdrop of rising property prices and a consistently low delinquency rate of mortgage loans, many banks tried to outcompete their peers by pushing down the mortgage rate to record low levels. we were concerned that the low mortgage rates banks charge might not be adequate to cover the potential credit loss if property prices were to correct sharply in the future. the hkma has

progress or a stagnation of growth, as long as we can find the right balance between addressing climate change and maintaining socioeconomic development. yes, it would be a difficult, long, and winding journey, but we hope that this two - day forum will contribute to charting the right path through it. here in hong kong, our emissions are very small given our small physical size, but we are committed to doing our part and will aim to achieve zero carbon emissions by 2050 through four main decarbonisation strategies : " net - zero electricity generation, " " energysaving and green buildings, " " green transport, " and " waste reduction ". 1 / 2 bis - central bankers'speeches as an international financial centre, the gateway linking up mainland china with the rest of the world, as well as asia's sustainable finance hub, we can do a lot more in climate finance. in fact, hong kong has been actively contributing to the region's transition by supporting sustainable financing, fostering innovation, and promoting thought leadership. as part of these strategies, the hong kong financial regulators have implemented various initiatives to promote sustainable finance and support the transition to a lowcarbon economy. for example, we have established the green and sustainable finance cross - agency steering group to coordinate the effort across the whole financial sector, whether it is banking, securities, or insurance, to green our financial system. we have also introduced the green and sustainable finance grant scheme to provide financial incentives to eligible bond issuers to take up sustainable financing. we have set up the hong kong voluntary carbon market, and also released new guidelines on climate - related disclosure of climate - risks and opportunities. so a lot has been done and there will be more coming, including the hong kong taxonomy. in 2022, more than one - third of the asia region's green and sustainable bonds and loans were arranged in hong kong, reflecting our increasing prominence in sustainable finance. the annual issuance of green and sustainable debt in hong kong has also seen remarkable growth in the last few years, expanding from just us $ 12 billion in 2020 to more than us $ 80 billion in 2022, a six - fold increase in just two years. our financial industry has taken significant steps to integrate esg considerations into their governance structures, strategic decision - making, risk management practices, and disclosure processes. we are also keen to join hand with like - minded peers like many of you here today. the ifc and hkma have had a