among globally active firms, and the high degree of correlation in their assets, underscored the vulnerability of the entire international financial system to the potential failure of these firms. in response to these revealed regulatory shortcomings, the basel committee has announced four sets of changes to minimum prudential standards for internationally active banks : first, in 2009 it revised and strengthened the market risk requirements of basel ii, in what has become known as basel 2. 5. second, last year it issued basel iii, which improved the quality and increased the quantity of minimum capital requirements, created a capital conservation buffer, and introduced an international leverage ratio requirement. third, and coincident with basel iii, the committee issued a framework for quantitative liquidity requirements. fourth, it has just today released the rules text of its assessment methodology for determining an additional capital requirement for global systemically important banks ( g - sibs ) – popularly referred to as a “ capital surcharge. ” bis central bankers ’ speeches in the basel committee itself, work on basel 2. 5 and basel iii has been essentially complete for some time. as reported recently by the committee, 1 implementation of basel 2. 5 and basel iii into national legislation or regulations is at various stages of progress around the world. two points are worth making with respect to u. s. implementation. first, while u. s. bank regulatory agencies have published a proposed regulation for the new market risk capital requirements, we did not include the trading book securitization and resecuritization portions of basel 2. 5. the complication here, and with part of basel iii implementation, lies in the use of agency credit ratings. the dodd - frank wall street reform and consumer protection act requires the removal of agency credit ratings from all regulations throughout the government. the banking agencies thus need to develop substitutes for agency ratings in each of the quite different contexts within the capital standards where they are used. this has not been the easiest of tasks, but i believe we are now close to convergence on the approaches we will take in fashioning these substitutes. thus we should soon be able to draft a proposed regulation for the rest of basel 2. 5. work on the basel iii rule has had to compete for staff time with all the other rulemakings currently underway at the banking agencies, but i would expect a proposed regulation in the first quarter of 2012. my second point pertains to the six - year transition period for basel iii, which by its terms phases

norman t l chan : brief remarks on the development of the rmb market opening remarks by mr norman t l chan, chief executive of the hong kong monetary authority, at the second hong kong – australia rmb trade and investment dialogue, hong kong, 22 may 2014. * * * treasury secretary ( martin ) parkinson, ( deputy governor ) philip ( lowe ), distinguished guests, ladies and gentlemen : 1. good morning. it is my great pleasure to welcome you to the second hong kong – australia rmb trade and investment dialogue. i would like to especially extend a warm welcome to our friends from australia. this dialogue attests to the spirit of collaboration that we share, and indeed it is collaboration that will take us forward in the development of the rmb market. the seminar today will be a good opportunity for us to take stock of recent developments, exchange views and share experiences, and identify our priorities ahead. 2. i recall that three years ago, in march 2011, i visited sydney on a roadshow to talk about hong kong ’ s newly created offshore rmb business platform. this was in fact the very first in a series of roadshows that i and my hkma colleagues organised, covering key markets in south america, russia, middle east, japan, spain, the uk and the us. in our sydney roadshow, i was particularly impressed by the keen interest and high level of curiosity of the australian audience, who wanted to understand more what rmb internationalisation was all about and what it meant for them as corporates with trading and investment links with china. we were then at an early stage of this long and exciting journey of rmb internationalisation. at that time, the cross - border rmb trade settlement scheme was still a “ pilot ” and only covered selected provinces in the mainland. rmb trade settlement handled by banks in hong kong was only some rmb100 billion a month, which is less than one - fifth of the rmb600 billion registered in march this year. 3. the offshore rmb market in hong kong has indeed achieved phenomenal progress in the past three years. hong kong ’ s rmb real time gross settlement system registered an average daily turnover of close to rmb700 billion in april this year, which is about twelve times the level when i visited sydney in 2011. in the foreign exchange market – another area where activities have picked up sharply – we are seeing an average turnover of rmb spot and forward transactions of some