a deposit insurance system and other mechanisms to protect investors, depositors and the insured will quickly dissolve and reduce the risks as they arise. finally, the central bank needs to look at the systemic risks in the entire system. when systemic risks do arise, prompt and proper action shall be taken in terms of monetary policy and liquidity based on domestic and international experience, in order to alleviate the damage on the financial industry and the national economy. in conclusion, when we steadily promote the pilot cross - sector operation in the financial industry, the legislature, central bank and supervisory agencies are faced with new challenges. in the direction set by the 5th plenum of the 16th cpc central committee, we will strive to do a good job in every area to make effective progress and accumulate more experience. thank you.

, in late 80s and early 90s, the financial industry was not segmented in china. the disorder financial industry witnessed in early 90s was caused by many reasons, including the lack of legislation, supervision, expertise, internal control and accounting standards. the financial eco - environment then would inevitably give rise to problems. in the first part of 90s, commercial banks were requested to terminate their international business company and credit card company, because many of the disorders were thought to have originated in non - banking companies created by commercial banks. in retrospect, many banks still feel that a separate credit card company to run the business was a meaningful exploration. later on, problems occurred in the stock market and capital market, leading to the perception that it was a dangerous thing for fund to flow from banks into the stock market. at the same time, in consideration of what happened in the great depression, the banking and securities sectors were further segmented. in 1999?? one reason that the four big commercial banks established four asset management companies was that provisions on the management of asset management companies could provide them with some flexibility in disposing of npls, flexibilities that were beyond the reach of commercial banks. for example, asset management companies could do debt equity swap, but commercial banks were not allowed. other methods of asset disposal by asset management companies were also not allowed in the case of commercial banks. the purpose of establishing asset management companies was to dispose of npls in a flexible manner. of course, large - scale transfer of npls out of commercial banks might not be possible in the future ; rather, commercial banks will resolve the problem assets on their own. therefore, if commercial banks are still constrained by the rules of segmented operation in investment, share - holding and asset disposal, their ability to dispose of npls will be limited. in addition, asset management companies also hope to further enhance their capability by establishing their own securities companies to put the assets under their management on the capital market. there should be new considerations and arrangements. we are in favour of reviewing and interpreting history in our endeavor while moving forward. this will help us find a correct way of thinking and create a necessary environment for experimenting cross - sector operation in the financial sector as put forward by the 5th plenum of the 16th cpc national congress. iii. the experiment with cross - sector operation must proceed steadily, because such operation needs a large pool of high quality talents and risk control capability. we all know the importance of talents