complexity of otc derivatives, had been a major factor, if not in triggering the collapse of lehman brothers and the near - default of aig, at least in amplifying market disruptions in their aftermath. at the pittsburgh summit in september 2009, g20 leaders committed themselves to increasing the resilience and transparency of otc derivatives markets, including through mandatory central clearing of standardised otc derivatives. as a result, the share of otc derivatives cleared centrally has increased markedly, especially in the otc interest rate and credit derivatives segments ( see chart 1 ). as evidenced by the financial stability board ( fsb ), there also seems to be scope for substantial further growth in central clearing, especially for interest rate swaps ( irs ) and credit default swaps ( cds ) ( fsb, 2016 ). inevitably, the increased share of central clearing has been associated with further risk concentration in ccps. this in itself is not a concern. as long as ccps are superior risk managers and act as pillars of strength rather than sources of contagion during potential crisis situations, they act as risk poolers, not risk takers, and they therefore reduce the overall level of risk in the global financial system ( not to mention other benefits such as a more efficient use of scarce collateral ). in this respect, they are c1 share of centrally cleared transactions in otc derivatives markets ( % ) s2 s1 s2 s1 s1 s2 s1 s2 s1 s2 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 interest rates swaps credit default swaps source : fsb data, ecb calculations. fundamentally different from banks, whose social function is to transform risk and maturity. in addition, the financial resources included in the ccp recovery waterfall provide for “ built - in bail ‑ in ” of their shareholders and clearing members. nevertheless, in order to ensure that this is the case and that ccps can withstand not only tail events but “ tail of tail ” events involving the default of multiple clearing members, policymakers have in recent years embarked on an ambitious agenda to enhance their robustness. the adoption by the cpmi and the board of the international organization of securities commissions ( iosco ) of the principles for financial market infrastructures ( pfmi ) ( cpmi - iosco, 2012 ), related guidance on financial market infrastructure recovery ( cpmi - iosco, 2014 ) and the fmi annex to the fsb ’ s key attributes

finance : 9. the first measure is a three - phased approach to promote green and sustainable banking in hong kong. initially, to develop a common framework to assess the existing baseline of individual banks to establish how “ green ” they are, by talking to the industry to identify the parameters to be included in the assessment ; secondly, to engage and consult the industry on whether supervisory requirements are needed ; and if needed, how the hkma should develop our supervisory expectation or requirements ; and thirdly to focus on implementation, monitoring and evaluation. 10. the second measure relates to responsible investment by the exchange fund. the exchange fund now adopts a guiding principle that priority will be given to green and esg investments, if the long term return is comparable with other investments on a risk - adjusted basis. 11. our third measure is the launch of the centre for green finance under the hkma ’ s infrastructure financing facilitation office, focusing on capacity building to facilitate the equipping of financial institutions with the knowledge, skills, tools and other resources in green finance. 1 / 2 bis central bankers'speeches 12. in fact, we ’ re now in our developmental plan to prepare banks for the upcoming changes. a working group on the assessment framework has been in place since august, and today ’ s seminar marks the beginning of the capacity building programme for the centre for green finance. on the other hand, the assessment framework will help banks understand their readiness for change, while the capacity building events will equip practitioners with the necessary knowledge for the changes. 13. for today ’ s seminar, we will first invite the ifc to provide an overview of the opportunities and challenges to green banking, and introduce some case studies on their approach to assisting banks in “ greening ” their operations. this afternoon, several banks will share their initiatives and practical experience on their green journey, including governance, risk management, disclosure and green products and business policy. 14. and here i would like to extend our special thanks to the ifc for their dedicated support for this workshop. their expertise will surely benefit our audience today. i would also like to thank hsbc, standard chartered bank, citibank, boc and bnp paribas for sharing their experiences with everyone later today. 15. ladies and gentlemen, i wish you all a fruitful workshop and i look forward to working closely together with the industry to develop green and sustainable banking in hong kong. thank you very much. 2 / 2 bis