The U.S. monetary policy framework that exists today has proven reasonably good at laying the foundation for price stability that is a necessary condition for sustaining growth at full employment over time. Although the world of central banks is still characterized by substantial diversity in the regimes they operate under, the actions of central banks reveal on average a much greater appreciation of the benefits of price stability and a greater willingness and ability to achieve it. These gains in inflation performance have been supported by a range of factors. Luck in the form of smaller shocks, technological change, other policy actions that contributed to more rapid economic integration and greater flexibility in how economies adapt to change, and greater financial resilience have all contributed to this improvement in inflation outcomes. But monetary policy seems likely to have played a decisive role, and part of that improvement reflects the sustained improvement in the institutional framework within which central banks operate. Credibility, particularly in monetary policy, takes time to establish, and can be easily compromised. It comes not just from what you say you will do as a central bank, but from what you actually do over time, and the results of those actions. It depends importantly on the competence and courage of those asked to lead central banks, on their capacity to be flexible and creative in response to our rapidly changing world, on their ability to communicate effectively and to acknowledge uncertainty.
And we uphold the integrity of the banking system. 12. 160-plus incumbent banks and new virtual banks — including banks built by tech giants — operate in our ecosystem. They may have different fintech strategies. They may try and grow their digital banking businesses in different ways. But it’s precisely this diversity that 1/4  BIS central bankers' speeches  makes the Hong Kong banking market so dynamic and well-positioned to drive innovation. This diversity is crucial to our vision of shaping Hong Kong into a global fintech hub. 13. So Hong Kong has embraced a new era for smart banking. But what will thenext era look like? How will we bring our vision to life? I think we’re all here today with those questions in mind. 14. At the HKMA, we know data will be vital to the future of banking. Data analytics is pivotal in customer authentication, credit assessment, and compliance monitoring. Indeed, data is key to almost every banking function. It is perhaps the most powerful tool for delivering the timeless banking principles I mentioned. As we head into the next era, data will enable better service, greater trust, and more efficient capital management. 15. Going back to my dining analogy, you could say data is banking’s “secret sauce”. It makes every meal better — no matter how you serve it. And that is why the HKMA is adopting a data-centric strategy to support the future of banking in Hong Kong. 16.