schemes. in malaysia, these schemes are dominated by pension funds, which predominantly manage household savings. however, the lcr cash outflow assumptions for investments from institutional funds are more severe than for investments for retail funds, even though the underlying savings are from households in both cases. as a result, hqla requirements for banks are higher than might be expected. hong kong sar – given the limited supply of hqla denominated in hong kong dollars, the hkma expects hong kong to be a jurisdiction which needs to adopt alternative arrangements for lcr purposes. hkma have stated that they are likely to use option 2 for alternative arrangements, which allows the use of level 1 foreign currency hqla to cover local currency liquidity needs. appendix 2 : basel iii liquidity coverage ratio ( lcr ) definition of hqla there are two categories of assets that can be included in the stock of high quality liquid assets. “ level 1 ” assets can be included without limit, while “ level 2 ” assets can only comprise up to 40 % of the stock. supervisors may also choose to include within level 2 an additional class of assets ( level 2b assets ). if included, they will be within the 40 percent limit on level 2 assets and comprise no more than 15 percent of the total stock of hqla. level 1 assets are limited to : 1. coins and banknotes ; 2. central bank reserves ( including required reserves ) ; 3. marketable securities representing claims on or guaranteed by sovereigns, central banks, pses, the bank for international settlements, the international monetary fund, the european central bank and european community, or multilateral development banks, and satisfying certain conditions such as being assigned a 0 percent risk - weight under the basel ii standardised approach and traded in large, deep and active repo or cash markets characterised by a low level of concentration ; 4. where the sovereign has a non - 0 percent risk weight, sovereign or central bank debt securities issued in domestic currencies by the sovereign or central bank in the country in which the liquidity risk is being taken or in the bank ’ s home country ; and 5. where the sovereign has a non - 0 percent risk weight, domestic sovereign or central bank debt securities issued in foreign currencies are eligible up to the amount of the bank ’ s stressed net cash outflows in that specific foreign currency stemming from the bank ’ s operations in the jurisdiction where the bank ’ s liquidity risk is being taken. level 2a

training and qualifications related to green and sustainable finance. 2 / 4 bis - central bankers'speeches number three is developing a regulator - approved knowledge framework, or what we call the enhanced competency framework, to provide a more structured programme for banking practitioners to build their knowledge and expertise in green and sustainable finance. this is a major undertaking that calls for close collaboration between the public and private sectors. it requires more than just regulatory push. the developmental work is equally important to provide the necessary ecosystem that supports climate financing. indeed, hong kong has gone a long way in this regard and has firmly established its leadership role in the field of green and sustainable finance. as a snapshot, green and sustainable debt issuance in hong kong totalled us $ 57 billion in 2021. it accounted for one third of international issuance of green and sustainable bonds in asia. in 2022, we continued to see strong momentum, in particular in the area of green and sustainable loans. the vibrant green bond market is in part a result of the many breakthroughs made by the government green bond programme. since 2019, the hkma has assisted the government in issuing nearly us $ 16 billion worth of green bonds targeting both institutional and retail investors. we made use of each issuance to innovate and expand the suite of green bond products in terms of currencies, tenors and distribution channels, thus laying the foundation for other public and private sector issuers in the region. these issuances kept pushing the boundaries. just over the last few years, we made the world's largest retail green bond issuance, asia's largest esg bond issuance, and issued the world's first tokenised government green bond. we will continue to seek new breakthroughs. in the coming five years, planned annual issuance of government green bonds will increase from us $ 35 billion to us $ 65 billion. the mandate of this programme will be expanded to cover sustainable bonds as well. we will also consider how best to incorporate green and sustainability elements into a new infrastructure bond programme we are developing for the government. we will continue to press ahead with the experimentation in tokenised green bonds, leveraging blockchain technology to enhance the efficiency of bond issuance and transaction, and to explore real - time tracking and reporting of the environmental impact of projects funded by bond proceeds. and to promote financial inclusion, we are now looking into an arrangement to earmark a certain proportion of future green and infrastructure bond issuances for