international trading companies based in singapore that will demand such services. with the new rmb clearing arrangements, we can expect financial institutions based in singapore to reach out to local and regional corporates and investors, and encourage greater participation in the offshore rmb market. 6. mas is delighted to have icbc singapore as our rmb clearing bank. icbc singapore has considerable experience in rmb business and is well placed to launch a reliable and efficient rmb clearing service. with the qfb privileges it now enjoys, icbc is committed to growing its business in singapore. i understand that among other things, it intends to designate singapore as its southeast - asian hub for rmb business and will make singapore its wealth management hub covering southeast asia and south asia. bis central bankers ’ speeches 7. icbc and singapore can together play a big role in promoting the greater use of the rmb for trade settlements and other economic activities within asia, and particularly in southeast asia. 8. i congratulate icbc for its commencement as singapore ’ s rmb clearing bank. thank you. bis central bankers ’ speeches

when their risk appetite drives prices higher relative to economic fundamentals, there may be a greater risk of outsized drops in prices that can be destabilizing. 4 the fed looks at a broad range of asset markets, including equities, treasury securities, corporate bonds, loans, and real estate. this table from our fsr shows the sizes of the asset markets discussed in this section as of q2, the most recent data available. the largest asset markets are those for residential real estate, equities, treasury securities, and commercial real estate ( cre ). 5 this year, asset valuations have generally risen notably above their historical levels. in particular, prices of residential and commercial properties remain above levels historically associated with fundamentals. house prices, relative to rents, are near alltime highs. further, prices have started increasing again in recent months after falling for more than a year. commercial property prices also remain high relative to rental income. i am watching closely the extent to which post - pandemic supply and demand patterns see the box “ vulnerabilities from asset valuations, risk appetite, and low interest rates ” in board of governors of the federal reserve system ( 2021 ), financial stability report ( washington : board of governors, may ), pp. 15 – 18, https : / / www. federalreserve. gov / publications / files / financial - stability - report20210506. pdf. see board of governors of the federal reserve system ( 2023 ), financial stability report ( washington : board of governors, october ), pp. 5 – 6, https : / / www. federalreserve. gov / publications / files / financialstability - report - 20231020. pdf. - 4normalize. demand in the office sector has remained weak, particularly in central business districts and coastal cities, with vacancy rates increasing further and rent growth declining. finally, average delinquency rates for commercial mortgage - backed securities have moved up recently, as office and retail loan performance has deteriorated. if delinquency rates generate selling pressure or increase notably further and result in forced sales of properties, then cre prices could decline sharply. another notable market development has been the significant increase in longerterm bond yields since june. decompositions between changes in expected rates and term premiums depend on the specific models and assumptions used, but i would say that an expectation of higher near - term policy rates does