Prior to the summer of 2007, in a number of official publications 16 , attention was drawn to a number of growing vulnerabilities and potential risks such as: •  the (then incipient) crisis in the US sub-prime mortgage market and its potential to deepen and spread to other markets;  •  the fact that financial market liquidity could vanish abruptly when investor uncertainty and risk aversion rose;  •  the role of hedge funds as key players, over the years, in fuelling liquidity in financial markets, implying that a shock to the hedge fund industry would severely affect the smooth functioning of some markets;  •  the excessive reliance of investors on the risk assessment of structured products made by rating agencies;  16  See ECB Financial Stability Review, June 2007; BIS Quarterly Review, June 2007; Bank of England Financial Stability Report, April 2007; IMF Global Financial Stability Report, April 2007. 8  BIS Review 115/2009  •  the concentration of risks in the financial system, which was becoming increasingly difficult to identify due to the proliferation of structured finance products and credit risk transfer instruments;  •  the risk-bearing ability of the ultimate risk-holders in these chains. However, it would be fair to say that few, if any – including market participants and public authorities – were able to foresee the magnitude and severity of the crisis.
Infrastructure Asia harnesses the networks and collective capabilities of public sector agencies and private sector firms across the region to meet Asia’s infrastructure needs by (i) connecting partners in the 2/5  BIS central bankers' speeches  ecosystem; (ii) building capacity in demand markets; and (iii) providing top-level project advisory to improve bankability. Infrastructure Asia provides an open platform for Chinese (including Shanghai-based) infrastructure developers and financial institutions to partner players in Singapore in regional infrastructure projects. b. Furthermore, as infrastructure demand and foreign investments along the Belt and Road region increase, we expect a boost in demand for commodities and growth in commodity trade. Singapore’s strategic location in the crossroads of key trade flows has enabled commodity traders in Singapore to capture such opportunities. Shanghai Pudong Development Bank (“SPDB”) opened its first overseas commodity centre in Singapore in October this year, providing global commodity businesses with commodity-related financial services and solutions. c. Singapore banks are also embarking on BRI collaborations with Shanghai banks. UOB signed a MOU with SPDB in September this year to serve companies hoping to tap on BRI opportunities, providing financial solutions covering investment advisory, cross-border RMB transactions, syndicated loans, project and trade finance, and cash settlement. OCBC Bank signed its second MOU with Bank of Shanghai in April this year, leveraging each other’s strengths, networks and platforms to support customers in their BRI expansion plans, including access to OCBC’s funding and risk management solutions for Bank of Shanghai’s corporate clients.