deepen our ils ecosystem here. public - private partnerships 21 moving on, i would like to touch on public - private partnerships – the other equally important arm of our alternative risk transfer strategy. 22 continued industrialisation, expanding cross - border trade, and infrastructure development are at the heart of asia ’ s growth. these create vast investment opportunities in the region, and will also drive demand for insurance solutions to mitigate a variety of business risks. 23 one such initiative is china ’ s one belt one road ( obor ) initiative, the most ambitious infrastructure project of its kind to - date. obor seeks to connect china and countries across asia, the middle east and europe through a series of land and sea trade routes. vital public infrastructure, such as roads and railways, gas pipelines, power plants and ports will be built in over 60 countries, with total estimated infrastructure investment to exceed usd 1 trillion. 24 however, modern risks lie along these ancient routes. there are a myriad of geopolitical, legal, credit and environmental risks in many countries along the corridor. political instability, rioting, terrorism and conflict can lead to contractual issues and financial losses. unfamiliarity with legal frameworks and regulations can lead to expensive delays. non - payment risks can be exacerbated by emerging markets ’ vulnerability to external shocks, such as currency and commodity price volatility. 25 the mas is thus seeking to co - create new risk solutions with regional governments and the industry, and utilise these solutions on a pre - emptive basis to help governments and investors safeguard against key risks like natural catastrophes, construction risks and political risks. 3 / 4 bis central bankers'speeches 26 to this end, i am glad to announce the formation of the singapore - based infrastructure consortium for obor projects, with china re singapore as the administrator. the obor insurance consortium is envisaged to provide top - up capacity and specialised insurance coverage for obor projects in apac ex - china, by bringing together singapore - based insurers, reinsurers, and brokers who will contribute insurance capacity and provide risk management services for obor projects. 27 the obor consortium will initially focus on key lines of business that play to the specialty risk strengths of singapore ’ s insurance markets, with a view to ultimately be a one - stop solution for both p & c insurance and other specialty insurance. 28 we will pilot the obor consortium with two lines of business : construction ; and project cargo &

see board of governors ( 2019a, para 2 ). afonso and others ( 2022 ), among others, investigate how to identify ample - reserves regimes. in periods when reserves are ample, there might be an increase in overnight reverse repurchase activity following an increase in reserve supply because nonbank financial institutions absorb liquidity that banks find costly to hold on their balance sheet because of regulatory capital rules. if a prime mmf lends money to a bank in the federal funds market instead of lending it money in the on rrp facility, the bank increases its liabilities ( borrowing from the prime mmf ) and assets ( reserves ), which expands its balance sheet. it will affect the banks ’ various regulatory ratios and count toward calculating the federal deposit insurance corporation fee. - 9is mindful about adjusting its other administered rates in sync with the interest rate on reserve balances. this practice helps ensure arbitrage works to shift the demand curve as indicated. implementation tool 4 : open market operations so far, i have talked about how the fed influences the demand curve by changing its administered rates. now, i will talk about how the fed shifts the supply of reserves in the system. it does so by buying or selling securities, so - called open market operations. when the fed purchases securities, it pays for them by depositing cash into the appropriate banks ’ reserve balance accounts, adding to the overall level of reserves ( cash ) in the banking system. before 2008, open market operations were the fed ’ s primary monetary policy tool because there were limited reserves in the banking system, a so - called scarce - reserves regime. in a scarce - reserves environment, the supply curve intersects the demand curve on the downward - sloping part of the demand curve, as illustrated in the left panel of figure 4. open market operations are the tool old textbooks emphasize. the fed would inject or drain reserves through open market operations to keep the vertical supply curve at the desired location — where it intersects the demand curve at the intended federal funds rate. since the supply of reserves naturally changes — for example, because of the withdrawal of reserves into physical currency — the fed conducted these operations frequently. today, being in an ample - reserves regime, the fed operates on a different segment of the demand curve and uses different tools, as illustrated in the right panel of figure 4. - 10 technical adjustments to the supply of reserves : a case study although active management of the supply of reserves is not, by design,