lisbon meeting ” held in lisbon, portugal. our attendees made use of the opportunity to enhance mutual understanding and information exchange. amcm has achieved fruitful results last year as aforementioned. we are grateful to the secretary for economy and finance, for his wholehearted support and guidance and we have had the care and coordination of the liaison office of the central people ’ s government in the msar, the office of commissioner of the ministry of foreign affairs in the msar, all government agencies, the financial sector and the community. it goes without saying that the efforts and hard works of our colleagues are indispensable. i would like to take this opportunity, on behalf of the amcm board of directors, to express our candid appreciation. at the moment, international financial conditions show signs of recovery. however, hidden elements of uncertainty are still around. we shall keep a watchful eye and stay vigilant to deal with changes arising from external environment which may inflict risks and impact on our economy and financial system. through further deepening of the regional financial cooperation with guangdong province, there is an increasing space for development for our financial industry. i believe that our practitioners will grasp the opportunity to exploit the competitive edge of their institutions and macao to realize organic growth with a view to contributing to the continued stability of our financial industry conducive to the appropriate economic diversification of macao. finally, let us toast to the burgeoning prosperity of our motherland and the msar! the macao financial industry will continue its steady development! at the same time, we wish every guest health and wishes come true. thank you. bis central bankers ’ speeches

- step implementation of the “ new capital accord ” ii / iii of the basel committee on banking supervision. the “ guideline on financial information disclosure ” was promulgated to enhance the requirement for banks to disclose information. in response to the implementation of the pataca real time gross settlement system, the “ rules for cash in hand and minimum solvency ” was amended. in the supervision of the insurance industry, inspections were carried out according to annual plan. simultaneously, amcm finalized thematic onsite inspections of aml and cft on life insurance institutions operating in macao. at the same time, amcm amended the existing supervisory legislations and guidelines, mainly related to supplements to the provisions of the “ macau insurance ordinance ” and “ insurance agents & brokers ordinance ”. moreover, drafting of amendments to the legislations relating to employees ’ compensations, and guidelines which included corporate governance were carried out. in the management of fiscal reserve of the sar and exchange reserves, following the legislation of the creation of the new sar fiscal reserve system which became effective at the beginning of 2012, amcm takes into consideration the legal provisions relating to basic and excess reserve and the tolerance of acceptable risks to secure commensurate returns. moreover, amcm has been endeavouring to perfect investment management and widen investment channel, including the execution of the “ china ( mainland ) interbank bond market investment agency agreement ” with the people ’ s bank of china in march last year. besides, amcm continues to listen to the community, particularly the fiscal reserve advisory committee, all relevant advices ; and will increase, as appropriate, the proportion of riskier assets in the portfolio in the expectation of a higher return. as at end february 2013, fiscal reserve stood at mop164. 3 billion while fx reserves amounted to mop132. 6 billion. in financial infrastructure construction, amcm continues improvement and enhancement of the systems which are in operation. it also develops new systems so as to enhance management and service. the pataca real time gross settlement system ( rtgs ) was developed and was formally in operation at the beginning of 2013. the rtgs provides highly efficient and modern payment settlement service to the market and it is expected that it will provide impetus to upgrade the macao financial industry. in the disclosure of financial statistics and data, amcm makes use of the vehicle “ monetary and financial stability review ”, which is compiled and published at regular intervals, to conduct thematic research on the supervision of monetary