david carse : documentation risk, operational risk and the new capital accord speech by mr david carse, deputy chief executive of the hong kong monetary authority, at the asia pacific loan market association documentation launch, hong kong, 24 may 2002. * * * ladies and gentlemen, i am very pleased to be able to speak at this special luncheon to launch the aplma standard documentation. i am told that there has been an unprecedented demand to attend this event. i would like to think that this reflects my own attractions as a speaker. but i am realistic enough to recognise that the real star of the show is the documentation itself ; and your attendance here today reflects the level of interest in the outcome of the association ’ s hard work in bringing the first phase of this project to fruition. my purpose today is to stress the importance of good documentation and to place it in the more general context of the increased regulatory focus on operational risk that is a feature of the basel committee ’ s proposed new capital accord. i will also briefly describe the latest developments in the new accord and bring you up to date on the revised timetable. the work of the association it is over three years since i spoke at the inaugural luncheon of the association in hong kong. i said on that occasion that the association promised to become a vital part of the market infrastructure in hong kong. i noted particularly that the association could play a role in three main areas : by acting as an industry representative and interlocutor with regulators ; by establishing common standards and documentation ; and by promoting market transparency and efficiency. i am glad to say that the association has delivered on its promises in each of these areas. its website is, for example, now up and running, and is an important source of information for both members and non - members. if i could put in a plea, however, it would be for more market statistics to be made available on the parts of the website that are open to non - members - or honorary members such as the hkma. in its representational role, the association offered very helpful comments last year on the draft guideline that the hkma prepared on the management of the risks associated with syndicated lending. our initial draft generated a certain amount of heat. this was i think largely due to a feeling on the part of the industry that we had overplayed the inherent risks of syndicated lending. we therefore made it clear in the final version of our guideline - which we issued in non - statutory form

market. there is, therefore, an enormous responsibility placed upon the agencies viz., press, journals or any other media like reuters to ensure that authentic and properly interpreted information are provided to the market. correspondingly, the reserve bank of india has a responsibility to benefit from and contribute to the activities of media such as reuters. confidence and mutual trust is the key to a productive role for all concerned. the fact that reuters has thought fit to call an official from the rbi on this important occasion is a testimony to the valuable and fruitful relationship between media and the rbi. thank you.