hong kong's offshore rmb business hub. it provided industry feedback to the people's bank of china in facilitating the launch of the northbound swap connect. it also set up a dedicated working group and made a comprehensive proposal to the hkma on ways to further promote our rmb business, including building a marketdriven cnh yield curve and enhancing hong kong's rmb liquidity pool. the specific 1 / 2 bis - central bankers'speeches measures proposed by the tma are valuable reference that helps us focus our policy priorities and map out concrete steps to achieve those objectives. these are just some of the examples demonstrating the tma's efforts to make our treasury markets more competitive and more supportive of our financial sector, not to mention the many ongoing initiatives in nurturing treasury markets talent, implementing international standards and best practices, as well as engaging with international and regional peers. there's still a lot of work ahead. earlier this year, with the support of the banking and financial community, the tma launched the data licensing arrangement to align with international practices on benchmark usage and surveillance. under the arrangement, a small fee is charged on the subscription and use of certain benchmarks administered by the tma. hopefully the additional income will ensure the tma is better resourced to discharge its heavy responsibilities going forward. before i conclude, i would like to express my heartfelt gratitude to the members of the council, executive board and various committees of the tma, and all institutional and individual members, for your unfailing support and contribution. my thanks also go to the tma team for their dedication and commitment. with all your support, i'm sure the tma has what it takes to go from strength to strength. may i wish you all a productive and fruitful summit. thank you. 2 / 2 bis - central bankers'speeches

bankers. 8. another material change in banking from the “ good old days ” is the problem of what i call “ short - termism ” amongst some bank shareholders ( “ impatient capital ” focused only on bolstering their own short - term returns ). it has also become increasingly common for senior bank managers, especially at the top levels, to be hired on contract basis. while this might be justifiable from the point of view of hiring the best talent available in the market, it could have the unfortunate side effect of cultivating short - termism amongst senior bankers if they only work for a contract or two and therefore must deliver tangible and quantifiable financial results within a short period of time, such as a target roe. in essence, like football managers, they survive on their reputation for delivering fast results during the current league season. the problem has been exacerbated by two more factors. one is the move towards higher frequency of financial reporting, from annual, half - yearly to quarterly. while this move may have been driven by good intentions of promoting transparency and accountability, inevitably it compresses further the performance measurement period faced by bank management and increases the pressure on the senior managers in delivering short term performance. the second factor is the emergence of activist shareholders in the form of hedge funds and, to a lesser extent, certain pro - active fund managers. the net effect of 2 / 5 bis central bankers'speeches short - termism in banking is that firms would tend to opt for businesses or transactions that would boost short term performance in profits or share price, such as large scale acquisitions or mergers or rapid expansion. investments that are necessary for the longer term viability or competitiveness of the bank, such as upgrading of it systems and internal talent development, would tend to be given a lower priority. we have seen many high profile cases of massive expansion of business through indiscriminate acquisition or a sharp rise in proprietary trading by banks, which, as we now know, ended rather badly. fast forays into areas with insufficient expertise or chasing bulge - bracket status by combining aggressive trading businesses with more traditional banking have left banks exposed and created culture clashes in the race for profit. again, this short - termism in the modern corporate world is not at all conducive to regaining public trust in, and respect for, bankers. 9. while many bankers did place profit ahead of the interest of the customers they serve, it is at the same time increasingly