norman t l chan : domestic and international dimensions of unconventional monetary policy opening remarks by mr norman t l chan, chief executive of the hong kong monetary authority, at the conference on “ domestic and international dimensions of unconventional monetary policy ”, organised by the hong kong monetary authority and the federal reserve bank of new york, new york city, 20 march 2014. * * * mr mcandrews, professor sims, professor woodford, ladies and gentlemen, 1. a very warm welcome to all of you for attending today ’ s conference jointly organised by the federal reserve bank of new york and the hong kong monetary authority. this joint conference is very timely, as it is neither too early nor too late to examine the effects of the unconventional monetary policy ( ump ) of the fed, including its spill - over effects on the emerging market economies ( emes ). as we all know, the fed has already started tapering and, if everything goes according to plan, would end the asset purchase programme by the end of this year. the fed has made it very clear in its external communications that tapering is not tightening and that there would likely to be a gap between the end of qe and the actual tightening of policy interest rates. however, the market considers that we are now in the phase of “ exit ” from the ump, which also marks the beginning of the normalisation of us interest rates. when chairman bernanke first talked about a possible timeline for tapering in may last year, there were strong market reactions globally and all emes experienced significant sell - off. the market then calmed down somewhat for several months before we saw another round of eme sell - off in january this year. the question that is most talked about now in the financial and central banking community is the pace of the fed ’ s exit and its impact on emes going forward. were these two rounds of eme sell - off merely isolated market over - actions or are they warning signals on the turbulence that awaits the emes when us interest rates normalise? 2. to assess what may lie ahead, it is useful to look back and try to understand what happened in the past five years during which the global monetary and financial environment was dominated by the ump of the us and other advanced economies. in 2009, the market expectation was basically that qe would last for a year or so, i. e. “ low for a short while ”. the expectation then changed to “ low for long

norman t l chan : universal banking – hong kong ’ s perspective keynote address by mr norman t l chan, chief executive of the hong kong monetary authority, at the opening session of the asian banker summit 2011, hong kong, 7 april 2011. * * * distinguished guests, ladies and gentlemen, 1. i am very pleased to address this important conference this morning as it provides a timely occasion for us to take stock of what is happening to our banking industry at a time when the international financial markets are recovering from the global financial crisis. indeed, the landscape of banking has undergone very significant changes since the eruption of the crisis in 2008. and more changes are in store. some might even argue that banking will evolve beyond recognition when compared with what we knew previously. of course the international banking reform package, ranging from the new capital, liquidity and leverage regime under basel iii, the treatment of global systemically important financial institutions to the use of macro - prudential tools etc, will have different implications for different banks and different jurisdictions. it is not my intention to discuss today the new international standards that have been and are about to be adopted as these standards have been talked about very frequently amongst bankers and regulators. what i would like to do here is to share with you our views on the following three issues that have profound impact on the way in which the banking industry, including that in hong kong, should structure itself : universal banking vs. segregated banking universal banking vs. narrow banking branch vs. subsidiary operations. universal banking vs. segregated banking 2. first let me talk about “ universal banking ”, which may mean different things to different people. by “ universal banking ” i refer to a business model in which banks are allowed to provide a wide range of banking and other financial services to their customers, whether they are mass retail, high net - worth, smes or large corporates. in this connection, it may be appropriate to regard a universal bank as a one - stop financial supermarket. 3. hong kong has a long tradition of this type of universal banking. notwithstanding the experiences of the recent global financial crisis and the ongoing debate and scepticism in some jurisdictions, we continue to see merit in the model of universal banking. why? let me explain. 4. first of all, universal banking in the form of a one - stop financial supermarket provides what the customers need to meet their rising demand for investments in a wide range of financial and wealth management products. these customers can enjoy the