zhou xiaochuan : tenth anniversary of the china foreign exchange trade system speech by mr zhou xiaochuan, governor of the people ’ s bank of china, on the tenth anniversary of the china foreign exchange trade system ( cfets ) and the opening ceremony of the forum on china ’ s money market, shanghai, 16 april 2004. * * * distinguished delegates, ladies and gentlemen : good evening. i ’ m very delighted to be with you on the tenth anniversary of the cfets and the opening ceremony of the forum on china ’ s money market. ten years ago the china foreign exchange trade system ( cfets ) was set up in shanghai as part of the efforts to reform the rmb exchange rate system. starting from this, china began to construct a modern platform to offer trading, information and supervision services to the interbank market. based on this platform, a national unified rmb funding market was established in 1996, the interbank rmb bond market appeared in 1997, and a national unified rmb commercial paper market debuted in 2003. so far, by using electronic telecommunication technology, the cfets has basically formed a national unified trading platform and service system for the interbank rmb money market and fx market, serving all financial institutions in the country. all of these achievements have laid a solid foundation for safeguarding china ’ s financial security, increasing market supervision, improving the monetary policy transmission mechanism, and promoting market - based interest rate and exchange rate reform. the decade of accomplishments in the interbank market evolution is the result of reform and opening - up, as well as the devotion and participation of market participants. on this occasion, on behalf of the people ’ s bank of china, i would like to extend sincere thanks and profound solicitude to the staff of the cfets and all market participants. looking at development trends in the global fx market, we can see that we have enjoyed the latecomer advantage in terms of technology, but there is still a long way to go in market construction and development. the continuous deepening of china ’ s reform and opening - up requires further development of the financial market, and requires us to update the concept according to specific situations and encourage innovation with the future in mind. first, the transitional period for the banking industry after china ’ s entry into the wto ends in december of 2006. with the realization of national treatment for foreign institutions and the gradual deregulation on market accession, china ’ s financial industry will encounter increasing international competition

, particularly those in capital, liquidity, stress testing, and resolution. the staff have also assessed financial stability vulnerabilities as moderate. for instance, see the minutes of the federal open market committee meeting, july 31 - august 1, 2018, available on the board ’ s website at https : / / www. federalreserve. gov / newsevents / pressreleases / monetary20180822a. htm. - 14 conclusion i ’ d like to conclude by putting financial stability and our two new reports in a longer - term context. to paraphrase a famous line, “ eternal vigilance is the price of financial stability. ” we will publish these reports regularly as part of our vigilance. over time, some may be tempted to dismiss the reports entirely or to overdramatize any concerns they raise. instead, these reports should be viewed as you might view the results of a regular health checkup. we all hope for a report that is not very exciting. many baby boomers like me are, however, reaching an age where a good report is, “ well, there are a number of things we should keep an eye on, but all things considered you are in good health. ” that is how i view the financial stability report out today. we hope that this report and the supervision and regulation report will be important tools, sharing federal reserve views and stimulating public dialogue regarding the stability of the financial system.