Evolution of New York Fed’s Effort In the ten years that followed the financial crisis, we have continued to see a stream of misconduct scandals and cultural failures, and a corresponding increase in significant litigation and enforcement activity, with costs estimated at an aggregate of $ billion worldwide.3 At the New York Fed, our work in advocating culture and behavior reform in the financial sector 1/5  BIS central bankers' speeches  started in late 2013 when our former President, Bill Dudley, delivered a speech on the “too-big-tofail” problem.
There have been suggestions that, with the market now expecting the appreciation of RMB to slow down – or even reverse – there will be less interest in conducting RMB business. It seems to me that this would be a one-sided interpretation of a much more positive story. From a macro perspective, given the Mainland’s substantial trade and investment links with other parts of the world, it is safe to expect that a fair – and growing – portion of such activities will be conducted in RMB. Considering that the percentage of China’s trade settled in RMB is only less than 10% now (compared with 30% of Japanese trade denominated in Japanese Yen), it is reasonable to expect RMB-denominated trade to grow further. And with the Mainland economy continuing to grow faster than other major economies, we can also expect that the incentive for individuals and institutions outside China to hold more RMB assets will remain, if not get stronger. Consider also that, a more two-way RMB exchange rate will be conducive to a more balanced, and hence sustainable, development of offshore RMB business. For instance, when the RMB exchange rate expectation is no longer skewing towards just one direction, the incentives for both the payee and the payer to settle a trade transaction in RMB will be more balanced. Corporates will also be more willing to raise financing in RMB when it is not expected to appreciate strongly.