and ultimately on the effectiveness of monetary tools necessary in fulfilling our core mandate. step 3 : since public policy requires public trust, it is important to ensure coordination across public policymakers, particularly the government and the central bank, and to ensure transparency and accountability. at a fundamental level, this starts with the central bank having established transparent communication with the government to ensure accountability. for the bank of thailand, our accountability mechanism involves issuing the open letter addressing the rationale to the ministry of finance in case inflation falls outside the target range2. in the era of rapid information dissemination and easy access to social media, misinformation or misinterpretation could spread easily and wider than before. effective communication therefore does not just mean publishing press releases or doing surveys of business sentiment. it also involves preemptive steps, such as the use of social listening to identify issues that are top - of - mind concerns of the public and could evolve and undermine the trust of the central bank. then plan out scenarios and appropriate engagement strategy before the problem morphs into something more damaging. in a broader sense, effective communication does not just aim to correct the misinformation, but also to set healthy expectation for the public regarding the work and the mandate of the central bank. [ challenges 2 : financial landscape ] second challenge is how to adapt financial landscape to address underlying problems in our financial system as well as capture opportunities from innovation to support new business model and financial services. the real challenge lies in improving financial inclusion for the underserved groups, while at the same time not fueling further indebtedness for the structurally weak ones. in the case of thailand, smes usually face much higher cost of financing, part of the reasons being that financial institutions lack data to appropriately assess their underlying risks. we believe more efficient financial solutions have the potential to bring their cost of financing down. [ solution 2 3o's, ai / fraud ] resolving this will require new thinking on regulations, allowing new players with different business models to come into market and better utilize data – while ensuring a level playing field. so what can central bank do to reap benefits of new technologies and both address legacy issues and future ready our financial landscape? – again to maintain trust in the central bank and the financial system. 4 / 7 bis - central bankers'speeches while we understand that each country is different and what is suitable for thailand may not be suitable for others, let me share with you our thinking at the bank of

take any appropriate action. opportunities for hong kong having acknowledged the immediate challenges, i think it ’ s time now to turn towards the opportunities, above all in this region. for while the challenges from the west are deep, they should not blind us to the opportunities within asia. i would say that the coming opportunities for the banking industry here are bright – even if at times they may appear to be obscured by clouds abroad. in fact, i believe that they put us on the threshold of a new era for the banking industry in hong kong. i would like to highlight two of the most promising opportunities. the first is the offshore rmb market, which has developed rapidly over the past two years. the second is the increasing demand for asset and wealth management services, both institutional and individual. opportunity 1 : offshore rmb market on the offshore rmb market, hong kong bankers have been the first ones to exploit the new business opportunities. the development of this market in hong kong is a story very familiar to you, so let me focus my remarks on three specific questions which i am often asked. first, is the rmb liquidity pool in hong kong big enough? over the past year or so, the growth of rmb customer deposits has turned modest. on occasions there have even been month - on - month declines. some commentators have seen this as a sign that the rmb liquidity pool in hong kong is beginning to plateau and might not be able to support future rmb bond issuances and other financial activities. frankly, i think this should not be a cause for concern. one needs to recognise that the level of rmb customer deposits is a useful but incomplete measure of rmb liquidity. for instance, banks have been increasingly issuing rmb certificates of deposits as a means to tap rmb funds. taking rmb customer deposits and certificates of deposits together, these added up bis central bankers ’ speeches to 700 billion yuan at the end of july 2012, with a modest 5 % increase from the end of 2011. in other words, the rmb deposit pool has remained largely stable, at a time when we are seeing very vibrant rmb dim - sum bond issuances and expansion in other rmb financing and investment activities. this is a healthy sign that market forces are balancing supply and demand, and that the offshore rmb market in hong kong is maturing. looking ahead, the level of rmb deposits may rise or fall from time to time. this is only natural as