There must be a much greater focus than in the past on return on capital and on the generation of shareholder value rather than on pursuit of size and market share for its own sake. This is something in which we all have an interest. It is important for the stability of the world financial system and for the economic development of the Asian region that the banks of the world’s second largest economy are fully restored to health and can resume their major role in financial intermediation at home and abroad. I wish you therefore all the best in your efforts. As I mentioned earlier, the Japanese banks have been and will remain an important part of the financial system in Hong Kong. They also of course have a similar role to play in relation to Mainland China. I am aware that the Japanese banks felt particularly disappointed and aggrieved at the collapse of Gitic and the subsequent debt problems that afflicted other Mainland window companies. I do not intend to go over the past history of this episode that is hopefully now coming to an end. But it is possible to see some good coming out of it if it helps, as I hope it will, to restore financial discipline within China. It has also served as a useful reminder to both domestic and foreign banks in Hong Kong not to engage in name lending and not to rely on implicit guarantees.
While this presence may have diminished over the last two years, Hong Kong remains an important market for the Japanese banks and I am sure that you will continue to demonstrate your commitment in the years to come. BIS Review 65/2000  4