than had been thought possible in the light of historical experience. but i think we have learnt from the recent years of financial turmoil and i hope we are now in a better position to identify and therefore properly price the risks involved in the provision of credit enhancements or guarantees. what, for example, the bank and the miyazawa plan have achieved in the provision of credit guarantees to several sovereign bond issues after the outbreak of the financial crisis could also be achieved and expanded through market based arrangements. credit enhancement is quite common in the developed markets. in the us, the credit guarantee companies were insuring around us $ 278. 5 billion of debt securities at the end of 1998. the availability and use of credit enhancement facilities have become a basic ingredient of mature bond markets. it will be useful to examine how this could be promoted in the region. this promises to give a much - needed boost to the development of the bond market in the region. mr president, let me end by expressing confidence that the bank, under your leadership, will be able to play a more pivotal role in the development of asia as it steps into a new era in which technology presents an abundance of opportunities as well as risks.

training. 24. it is not a coincidence that one of the financial industry ’ s main professional bodies – the cohost of today ’ s gathering – is the hong kong institute of bankers, which was founded back in 1963 to enhance the profession. 25. everything in the financial services industry goes back to people. since the financial crisis 10 years ago, we have seen a significant increase in the complexity in capital, liquidity, risk management and other requirements. on top of that, we have rapid developments in technology and related areas like cybersecurity. the industry has to constantly upgrade its professional expertise and standards just to keep pace. 26. but unlike some other financial sectors, our regulatory framework for banks focuses on authorizing corporate entities. there is no formal licensing regime that applies to individual banking practitioners. our approach has therefore focused on encouragement and guidance – and to benchmarking. looking back on my time at the hkma, i am especially pleased with our work in launching the enhanced competency framework ( ecf ). 27. i am also glad to see the industry and our educational institutions cooperating to create new degree and post - graduate level courses in financial disciplines. 28. i think this whole “ soft power ” area is one where the regulator and the industry are very much in agreement. the hkma has not seen a need to impose mandatory qualifications for banking practitioners. through encouragement and cooperation with the industry, we have achieved our essential supervisory aim of ensuring that our institutions and industry are sound, stable and reliable. in addition, we have worked with institutions to enhance hong kong ’ s competitive position. for example, i like to think that our ecf programmes in aml / cft and in private wealth management have helped to enlarge and enrich hong kong ’ s talent pool in these areas. 29. people and soft power remain a top priority. hong kong ’ s competitiveness in financial services essentially rests on the quality of our people. the upgrading of skills and the development of talent are the foundation of hong kong ’ s future as an international financial centre. inclusion 30. it is very nice when both the hkma and the banking industry have broadly similar interests, as is the case with professional skills. but, inevitably, our aims do not always coincide. and this brings me to the next area of my discussion – and that is “ financial inclusion ”. in other words, ensuring that the banking industry caters fully to the needs of the wider economy and community