uncertainties for the transition, all banks and corporations should keep updated of the latest development and understand what aspects of their business would be affected – this is a fundamental first step. undertaking detailed risk assessment and formulating an action plan would be next. for now, some banks may hesitate to trade in products using the new alternative reference rates, as they want to see better market liquidity before they start. but this is a ‘ chicken and egg ’ scenario – if everyone plays a waiting game, the market will never be developed. more importantly, going into the market in a manageable scale would enable your people to learn the rope early before these trades become more main stream. client education is also important 10. while banks are gearing up their own preparation, the wide - spectrum of ibor users is adding further complexity to the transition process. switching to alternative reference rates is not something that can be done unilaterally. banks need to work closely with their counterparties to develop the necessary fall - back arrangements. 11. it may be relatively easy to discuss the transition plans with counterparties that are also financial institutions, as everyone is more or less on the same page. but ibors are also used by banks ’ different clients, both corporations and individuals. there is a big gap among these ibor users on the awareness of the benchmark reform, so the situation becomes less straightforward. 12. therefore, client education is another vital task. banks should begin outreach to their clients, and educate them about the benchmark transition early. this could help to minimise misunderstanding and costly litigation in the future. raising market awareness in hong kong 13. closer to home in hong kong, the treasury markets association ( tma ) has been working with bank representatives on benchmark reform for many years. more recently it has intensified its reach - out to other sectors. it has set up a working group to engage a wider spectrum of stakeholders including accountants, lawyers, bank customers and industry 2 / 4 bis central bankers'speeches associations like isda. it is important that different market participants understand what the transition will mean for their business operations and how they should prepare for these changes. the working group is now looking at issues like the implications on accounting and the transition of cash products. it will further engage stakeholders to explore means of encouraging the adoption of alternative reference rates in their day - to - day transactions and business activities. 14. at the same time, the hkma supervisors has also been actively engaging banks. in

for the asset and wealth management sector, including introducing tax exemption for family offices and reviewing the existing tax concession measures applicable to funds. in respect of green and sustainable finance, the government is also setting up a committee with industry experts in green technology, green finance and green standard certification to formulate an agenda for developing hong kong into an international green technology and finance centre ; and expanding the scope of the government green bond programme to cover sustainable finance projects. we trust that these will make the hong kong platform and ecosystem even more attractive and conducive to market participants looking to seize the opportunities ahead. 17. i know i have covered quite a lot already, so let me close here. i wish today's summit the very best success. and i look forward to working with the aplma and all of you here to promote the further growth of our loan market in the future. 18. thank you. 3 / 3 bis - central bankers'speeches