positioned to build and export regtech solutions to the rest of the world. 46. the white paper suggests developing a regtech skills framework. this framework will cover suitable modules and competency standards. and we would seek to identify the skills required for different roles and which would help speed up regtech adoption, and then we would help train and develop both new entrants and existing practitioners. 47. finally, on “ momentum matters ”. all our hard work will not bear fruits if the momentum for changes cannot be sustained. it is therefore crucial to keep the industry engaged in the years ahead. one suggestion is that we introduce a benchmark for our progress in increasing regtech adoption. this benchmark will provide us with a holistic framework that will enable us to visualise the success of our regtech initiatives. 48. that is a quick snapshot of the key recommendations in the white paper. in fact, we are already putting some of those recommendations into action. 49. for example, a flagship event is already planned for the first half of 2021. like this fintech week, that event will also use available technology to bring together delegates from around the world. so stay tuned for further details of the event. 50. also in the first half of 2021, we will be announcing details of our first regtech challenge. 51. and then looking ahead to the second half of 2021, we expect to set up the “ regtech knowledge hub ”. 52. around the same time, we also plan to release a regtech adoption index that will visualise our progress in increasing regtech adoption over time. in the meantime, we are also working hard to flesh out our thinking behind the other recommendations. for example, we would explore the benefits of providing appropriate incentives and other assistance to stimulate regtech solution innovation in hong kong. conclusion 53. so to conclude, i hope that through this presentation, i have sent a clear message to the audience that the value of regtech in banking is coming to the fore in hong kong. industry stakeholders should realise that regtech and its underlying technologies are the way of the future. 54. the hkma strongly believes that hong kong has the right foundations to support a thriving regtech ecosystem, and ultimately become a regtech hub. our city already enjoys broad fintech capabilities, strong support for technology businesses, a significant and wellestablished financial services sector, and most important of all, very supportive financial regulators. 55. we hope the white paper that the hk

muhammad bin ibrahim : of perception, sentiment and reality opening remarks by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the persatuan pasaran kewangan ( ppkm ) annual dinner & quot ; of perception, sentiment and reality & quot ;, kuala lumpur, 17 november 2017. * * * thank you for the invitation to address the members of the financial market industry at this financial market association of malaysia ’ s ( fmam ) annual dinner. l always look forward to this event as it provides the central bank with the platform to share our thoughts and expectations for the industry. we are operating in a very dynamic environment. last year, i stood here and explained in detail why it was a challenging year. this year is no different. as the operating climate changes rapidly around us, we need to adapt. the theme of my speech will be a bit different this year. titled “ of perception, sentiment and reality ”, it will be a bit longer than usual. i shall cover four parts ; financial market review, factors that drive the level of the exchange rate, comments on ringgit exchange rate and interventions, and initiatives to build resiliency and liquidity for our market. part i – financial market review it has been an eventful year and our financial market industry has gone through significant changes and developments. the ringgit, for one, has seen significant developments. last november, it was one of the most volatile currencies. a year later, it has not only strengthened but has greatly stabilised. the implied volatility has declined from a peak of 9. 7 % to about 3. 7 % currently. the influence of offshore market activities and its damaging spill - overs to the ringgit exchange rate have subsided, consistent with the significant decline in transaction volume in the ndf market. on the other hand, foreign exchange ( fx ) transaction volume in the onshore market has been sustained with improving transaction costs, facilitating business transactions for all market participants. the domestic bond market has also been more stable and the risks of significant sell - offs from non - residents and other major outflows have reduced. non - residents now hold a more manageable level of 26. 4 % of total government bonds outstanding, down from the high of 34. 7 %. during the early part of 2017, a period of significant capital outflows, the spike in bond yields was short - lived while the ringgit exchange rate