##ntial regulation of the central bank and the relationship with the ssm staff in frankfurt. the design and rules of the comprehensive assessment have been decided centrally, but the bulk of the detailed work has been managed in the national capitals. this pattern of most of the prudential supervision work being done in ireland, with most of the final decisions in frankfurt, is how things will be for this aspect of our work. there will also be some changes in the way we approach prudential supervision of banks in practice, as we learn lessons from the past five years and also adapt to the supervisory manual adopted by the ssm and drawing on the best of practices from each of the existing supervisors around europe. irish contributions to the system as a whole will continue, as with our initial provision of the software prism which we developed in the central bank of ireland and have been using to systematise our own supervision across the irish financial sector for the past couple of years : we were very pleased when the ecb purchased prism from us to use as the initial bis central bankers ’ speeches basis for controlling the ssm supervisory engagement with banks across the euro area banking system. and of course smaller banks will continue to be supervised wholly from dublin ( within the overall ssm approach ), as will the 400 credit unions, some of which continue to need special attention as the sector strengthens and consolidates. irish financial stability despite the progressive centralisation of important parts of central banking in europe important tasks remain a national responsibility. among these is an overall responsibility for the preservation of national financial stability. bubbles and other sources of financial instability can, as we well know, emerge in the national economy even if not present across the euro area as a whole. interest rate policy is obviously not available as a tool to inhibit the growth of a country - specific asset price bubble, so what should be done? actually, an emerging academic consensus among central bankers even outside the context of the monetary union is that asset price bubbles and surges in general consumer price inflation should be dealt with separately, using a wider range of policy tools. if the interest rate is being used to control inflation, then it is not available to dampen an asset price bubble : instead one or more macro - prudential tools should be used. these can include a range of instruments outside the toolbox of the central bank, including tax policy, but they can also include such central banking and regulatory tools as capital adequacy surcharges, loan - to

will improve cross - border trade facilitation under the current account while reform of the foreign exchange sector will move ahead to streamline administration, delegate power, improve regulation and upgrade services ; and a foreign exchange supervisory system will be established, which focuses on credit risk assessment and ex - post verification. second, prudent and orderly steps will be taken to advance high - standard opening - up of the capital account. by making coordinated planning for trading, exchange and remittance, for cross - border rmb and foreign currency management, and for capital account liberalization and risk prevention, we will liberalize the remaining few non - convertible items step by step while enhancing facilitation measures under the items already convertible. focusing on rmb internationalization and two - way opening - up of the financial sector, we will actively support shanghai in its building of an rmb - denominated financial asset allocation and risk management center to improve the width and depth of the rmb financial market. third, continued efforts will be made to enhance our abilities for economic and financial management as well as risk prevention and control in an open environment. we will improve the framework for foreign exchange market administration featuring " macroprudential management plus micro supervision " and enhance the review mechanisms for combating money laundering, terrorist financing and tax evasion so as to safeguard the stable and sound operation of the foreign exchange market. the near - term priorities in the reform and opening - up of the foreign exchange sector are as follows. first, we will diversify market products and participants home and abroad, and improve the infrastructure systems as well as service capacities of china foreign exchange trade system and shanghai clearing house so that they are better able to provide services globally from shanghai. second, measures will be taken to advance reform regarding cross - border investment by private equity investment funds 3 / 5 bis - central bankers'speeches to support their cross - border industrial investment. moreover, we will expand the pilot programs of qualified domestic limited partnership ( qdlp ) and qualified foreign limited partnership ( qflp ) to support shanghai becoming a major market in the world for wealth management and asset management. third, chinese residents will have more options for asset allocation overseas. through the mechanisms interconnecting financial market infrastructures, such as the shanghai - hong kong stock connect, shenzhen - hong kong stock connect and bond connect, we will scale up the qualified domestic institutional investor ( qdii ) scheme, improve qdii management mechanisms, and launch