BIS Review 139/2008  1  The first is entering the eurozone without sufficient progress in structural reforms; the second is the problems caused by potentially large capital inflows after the common currency is introduced. It is a commonly shared view that efficient labour and product markets, which help a country’s dynamic adjustment to asymmetric shocks, are essential for success within a monetary union.
Financial institutions have also been active since the very early days in helping build close associations between Hong Kong and Japan. The Hong Kong and Shanghai Banking Corporation Limited, familiar worldwide as HSBC, was established in Hong Kong in 1865. In the following year, 1866, HSBC opened its branch in Yokohama, and this contributed greatly to the development of trade finance in Japan.