mark w olson : us banking industry performance highlights - 2003 speech by mr mark w olson, member of the board of governors of the us federal reserve system, at the annual conference of the institute of international bankers, washington, 1 march 2004. * * * the banking industry enjoyed a very good year in 2003, one in which banks were able to adapt to a changing environment and still generate record profits. several factors contributed to this favorable setting : low interest rates, a boom in mortgage banking and deposit - gathering, and favorable trends in market - sensitive businesses as the year went on. we are just getting our first look at year - end financial information from call reports. although the figures are still preliminary, there are some interesting findings. in 2003, for the first time, insured commercial banks earned $ 100 billion dollars. these impressive profits were 14 percent higher than in 2002, which to that point was itself a record year for earnings. the industry's return on assets was almost 1. 40 percent, and its return on equity was 15. 3 percent. the level of earnings, even at $ 100 billion, may not be the most remarkable aspect of the industry's 2003 results. the industry not only earned record profits but, as the year progressed, changed the way they earned these profits. in other words, the industry adapted to changes in the business and economic environment and did well. changes really began over the summer, when mortgage originations began to taper off as longer - term interest rates rose. for eight large bank holding companies with major mortgage banking operations, the collective mortgage loan origination volume fell 50 percent to about $ 200 billion in the fourth quarter. this rate of decline parallels what other market sources indicate. naturally, the fees associated with these originations declined as well, although not as much as one might have expected. mortgage originations of $ 200 billion were still strong for these institutions by historical standards, and income was aided by favorable developments in mortgage servicing, namely the accumulated buildup of servicing portfolios from the surge in mortgage lending and the revaluation of servicing assets due to slower prepayments. net interest margins had been narrowing rather steadily since early 2002. a couple of things appeared to be at work. typically, margin pressure tends to arise at banks facing stiff competitive pressure on loan yields and funding costs, perhaps an escalation in funding costs at banks experiencing rapid asset growth. the current situation is not a typical or normal environment. the low - interest rate

joseph yam : financial market developments in hong kong remarks by mr joseph yam, chief executive of the hong kong monetary authority, at the euromoney 40th anniversary gala dinner, hong kong, 16 july 2009. * * * it is a great pleasure to be able to share the honour at this evening's euromoney awards dinner with so many excellent recipients. and it is a particular honour to receive the award for " outstanding contribution to financial markets ". this is a threefold honour. first, because it is awarded by euromoney, a publication – or rather an institution – with a particularly strong relationship with central banks and markets in this region. secondly, because the award is presented to the hkma as a whole, as a recognition of the hard work of staff from all parts of the organisation who have helped develop financial markets. and thirdly, because the award highlights an area of our work that usually receives less acknowledgement than it should : the development of financial markets not just through encouraging product innovation, but also through laying down the infrastructure to enable markets to function and grow. it is, i think, entirely appropriate that this evening's event is being held in a restaurant on top of the star ferry pier – as we are from time to time reminded by the swaying of the structure and the occasional battering from the ferries themselves. transport links are a good analogy for financial infrastructural links. they involve both local and international networks. they make use of technology at many different levels : from traditional cross - harbour ferry and metallic coins to advanced transcontinental passenger planes and real - time electronic clearing. and usually both transport systems and financial infrastructure receive attention only when something goes wrong. financial infrastructure suffers the further handicap that it is largely invisible – a matter of wires and electronic pulses – with none of the glamour or nostalgia that physical transport can sometimes evoke. so, quite understandably, the general public take it for granted – indeed may not even be aware – that hong kong has for some time had some of the most advanced, efficient and secure payment, clearing and settlement systems of any financial centre in the world. one of the responsibilities of the hkma is to promote the development of these systems in collaboration with dedicated service - providers and the financial industry generally. in addition to its responsibility for hong kong's domestic systems, the hkma also has a specific responsibility for promoting the development of systems in hong kong that facilitate the safe and efficient conduct of