foreign institutional investor ( rqfii ) scheme was expanded by rmb200 billion, bringing the total to rmb270 billion. the qianhai cross - border lending pilot scheme was also launched, enabling companies incorporated in qianhai to borrow rmb loans from banks in hong kong for uses relating to the development of qianhai. i look forward to the further streamlining of policy arrangements so that all cross - border transactions currently settled in us dollars can have the option to be settled in rmb also. this in turn could be followed by the continued relaxation of cross - border flows of rmb into and out of mainland china along with the liberalisation of chinaa€™s capital account. the relaxation of capital account restrictions, the expansion of the offshore rmb market, and an increase in the financial depth of the onshore markets can be mutually reinforcing and beneficial to the growth of the offshore rmb market. intermediation among non - residents the third set of characteristics involves the provision of intermediation among non - residents. the eurodollar market provides efficient intermediation among non - residents. for example, it allows for eurodollar bonds to be issued by non - us entities and bought by non - us investors. to an increasing extent, the offshore rmb market is functioning as a platform for rmb financial activities conducted by non - residents. the pool of rmb deposits in hong kong, being deposits of mainly non - mainland individuals and corporates, is exceeding rmb 800 billion. adding to that is the dim sum bond market, which has a size of rmb 260 billion at present. offshore rmb bonds are being issued by mainland chinese entities as well as multinationals, and they are being bought by offshore investors. at the same time, banks in hong kong are extending rmb loans to customers, with the outstanding amount of such rmb loans currently stands at close to rmb90 billion. bis central bankersa€™ speeches as the market deepens and a greater variety of rmb products become available offshore, we will eventually see more rmb intermediation within the offshore markets, especially as non - chinese residents become willing borrowers of rmb. however, for that to happen, work on different fronts needs to be pursued and market efficiency furthered through innovative solutions and active participation by different market players. i anticipate this could play out in three dimensions : a€¢ first, there will be a need to facilitate

speeches 07 jun 2022 opening remarks at the alliance for green commercial banks cornerstone members memorandum of understanding signing ceremony eddie yue, chief executive, hong kong monetary authority distinguished guests and friends, 1. good afternoon. it is my great pleasure to join you to celebrate another milestone of the alliance for green commercial banks. today we are going to witness the signing of a memorandum of understanding that brings in five cornerstone members to the alliance, welcome the on - boarding of four global partners and a knowledge partner, and publish the alliance ’ s first thought leadership paper. 2. my special thanks to the ifc advisory team and the hkma market outreach team for their hard work and close collaboration that brings out the biggest common denominator among various stakeholders. i would also like to personally thank the cornerstone members and partners for their strong support and contribution throughout the engagement process. what we have achieved today is the product of collective efforts. 3. we at the hkma feel privileged to have partnered with the ifc in launching the asia chapter of the alliance for green commercial banks. this is an important joint commitment and undertaking to support financial institutions in asia on their journey to become leading green institutions 4. indeed asia has the largest need for climate finance among the geographical regions. it is estimated that 66 trillion usd of climate investment is required for the region in the coming three decades. this is equivalent to over half of the global investment needed to contain temperature rise by 1. 5°c1. 5. the public sector alone cannot meet the enormous financing needs. commercial banks can and do play a crucial part in fostering the green transition. they can do so by adopting clear strategies and targets to develop green finance products and services to support the transition of the real economy. 6. we fully recognise that commercial banks are at various stages of this green transformation, and there is much scope to create synergy among banks in the region. the alliance serves as a platform to foster this much needed public - private sector partnership. the ifc offers a deep pool of knowledge and expertise in climate finance across the globe. the hkma will leverage hong kong ’ s international financial centre status as a focal point to promote green banking in the region. 7. since its launch, the alliance has organised capacity building events on a wide array of green finance topics, including green bank transformation, green building, voluntary carbon markets, climate risk management and green capital markets. 8. today the alliance is taking another big step forward by enlarging our network of