( nasd ), the japan securities dealers association ( jasd ), the korea securities dealers association ( ksda ) have all played a very important role in promoting innovation and development, regulating market behaviors, safeguarding the industry's interests, and forestalling market risks, and are an integral part of financial market regulation system in their respective country. experience has shown that the sros enable market participants to mobilize themselves to exercise self discipline, help the transformation of government functions, make the regulation more responsive to market demand, and promote market innovation and development in a market - based approach. in recent years, a lot of achievements have been made in china ’ s financial market development. however, the financial sector has its problems. for example, the imbalance between direct and indirect financing remains serious as bank loans still dominate financing ; the financial market development is lopsided as the bond market still lags behind securities market, and enterprise bond market remains under - developed ; information disclosure, credit rating and other essential mechanisms have yet to play a sufficient role ; the range of financial products are not diversified and market functions are yet to be fully played out. it is an imperative task to promote innovation and development in the financial market. for quite some time, we focused on liquidity management in the inter - bank money market, but did not fully acknowledge the financing, value discovery and risk management functions of the market. as a result, launching of financial products that are conducive to market development and urgently needed by market participants has been delayed. i hope that the association will gather members ’ wisdom and serve their need ; and innovation of market participants will be given full play to develop innovation mechanisms and patterns based on the special features of otc market. in the future, the products that are developed based on members ’ need, and are suitable for trading among institutional investors who have pricing and risk managing abilities will be registered at the nafmii and reported for filing with the regulatory authority. administrative exam and approval procedure will be abolished for such products. as the agency that overseas the operation of nafmii, the pbc has a lot of expectations on the newly established organization. i hope that the association will provide good services to its members and to the government and the general public, exercise self regulation functions, and contribute to innovation, reform and development of financial markets in china through hard work and innovation. thank you.

a sizeable easing of financing conditions for firms, especially in vulnerable countries ( see chart 10 ). chart 10 lending rates to non - financial corporations of tltro bidders and non - bidders ( percentage points ; deviations from september 2014 ) sources : ecb individual monetary financial institution interest rate statistics and ecb calculations. notes : non - financial counterparty lending rates are the rates on outstanding loans to non - financial corporations weighted by volume. the chart shows average rates across bidders and non - bidders in deviation from rates in september 2014. “ vulnerable countries ” are ireland, greece, spain, italy, cyprus, portugal and slovenia. “ other countries ” are all the remaining euro area countries. asset purchase programme finally, by linking the horizon of the app – both in terms of net purchases and the reinvestment policy – to the forward guidance on policy rates, expectations on the purchase horizon of the app adjust in line with the inflation outlook and automatically regulate term premia. the transmission of our asset purchases in the euro area has been similar to the transmission of other central banks ’ asset purchases in their respective jurisdictions, with the most pronounced effects at longer maturities. while negative interest rates and forward guidance have primarily been transmitted through the expectations component of interest rates, asset purchases have primarily operated through the term premium component. this is due to asset purchases affecting interest rates mainly by reducing the interest rate ( or duration ) risk borne by investors holding long - term bonds – the duration risk extraction channel. by purchasing securities with a relatively long maturity, the central bank frees up risk - bearing capacity among investors and fosters a rebalancing of their portfolio towards other, more risky, types of assets, including investment in productive capital. in the euro area, our net asset purchases and reinvestment policy have led to substantial duration risk being withdrawn from the market, in the order of 20 percent of the duration - equivalent stock of current public debt in the four largest euro area economies ( see chart 11 ). based on a term structure model that incorporates the duration channel, we can track the time - varying effect of the app on term premia as expectations on the purchase horizon change over time. at present, the app is estimated to be compressing euro area ten - year sovereign yields by more than 100 basis points ( see chart 12 ). we are confident that the effects of our asset purchases continue to feed through to euro area financial conditions and support a more accommodative monetary