rates, i. e., at comparatively lower rates of interest in the first few years, after which rates are reset at higher rates. this practice raised concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. it was also observed that many banks, at the time of initial loan appraisal, were not taking into account the repaying capacity of the borrower at normal lending rates. therefore, in view of the higher risk associated with such loans, the standard asset provisioning on the outstanding amount had been increased from 0. 40 per cent to 2. 00 per cent with effect from december 23, 2010. bis central bankers ’ speeches the provisioning on these assets would revert to 0. 40 per cent after one year from the date on which the rates are reset at higher rates if the accounts remain “ standard ”. since restructuring of an account is normally indicative of some problem in the account, it was decided in november 2008 that restructured housing loans should be risk weighted with an additional risk weight i. e. 25 percentage points over the risk weights normally applicable to the account. 43. although some of these prudential norms appear to be restrictive for growth of the housing finance sector, it needs to be kept in view that they are essential for sustainable and orderly development of the sector as they are meant to address macro - prudential concerns of financial stability. way forward the desire for a safe and secure home is timeless and universal. the twin problems of affordability and accessibility that impede the progress of housing in our country need to be addressed on a sustainable basis. for this, it would be desirable for the governments to withdraw from direct participation in the housing and housing finance sector and instead they need to take on the role as facilitators to create the enabling environment to encourage greater private sector participation. further efforts of the government are required to strengthen foreclosure laws, land records need to be computerised and archaic land laws, especially rental laws, need a complete overhaul. steps, such as, digitization of land records, linking of central regulations with state regulations, encouraging credit bureaus, introducing mortgage insurance, allowing real estate mutual funds and creating a favourable environment to facilitate foreign direct investment in housing for genuine and needy customers will help stimulate the housing finance sector. currently, the real estate sector is largely unregulated with consumers often unable to pro

hkib and the industry. this bridging programme is free and provides good opportunities for university students to gain practical knowledge in the hottest areas of banking. the inaugural class will be open for application very soon. 33. in saying all this, we should not miss out existing banking practitioners. so, the second direction is to better “ connect ” our workforce to the future of banking to ensure they stay relevant in the new era. our success will be all about upskilling our people to meet the future needs of the industry. for this to happen, an essential ingredient is the availability of in - demand training programmes with credible certification frameworks. 34. to date, more than 13, 000 banking practitioners have obtained certifications in numerous professional areas under the enhanced competency framework, or ecf. as the industry demand for fintech and green finance knowledge is strong, we will launch a new ecf on fintech later this year to provide more structured and comprehensive training programmes for fintech practitioners. we will also look into the feasibility of developing an ecf on green finance. 35. all these initiatives cannot be done by the hkma alone but require the collaborative effort of the industry, universities, and training institutes alike. so, the third direction is to provide platforms to better “ connect ” the key stakeholders together to enhance collaboration on talent development. the recently set - up fintech cross - agency coordination group and the centre for green and sustainable finance are the cases in point. ( closing ) 36. i would like to close, by stating my firm belief that human capital is the most valuable asset of any institution. banks can no longer simply rely on poaching talent. instead, we should all dedicate more resources and investment to grooming, upskilling and retaining talent to support the future development of the industry. 37. i, therefore, would like to offer my hearty congratulations to those banks that have received the talent development excellence awards. you are all worthy winners, who have showcased exemplary achievements and a long - term commitment to talent development. well done! 38. i am sure you all agree that promoting financial inclusion and talent development should be the very dna of every institution when gearing towards a smarter and greener financial system. and i look forward to working closely with all of you in this journey. 39. with that, i hope my remarks have provided some food for thought for today ’ s conference. and i wish the event every success. thank you very much.