This will be positive as long as we can avoid the defaults we saw at the beginning of the crisis, which were created by vehicles that were opaque and complex and impossible for investors to understand. EUROWEEK: At the same time, presumably French banks should not be discouraged from using the skills of their derivatives technicians, which are recognised throughout the world? Noyer: I agree completely. That is why I have been reticent about the idea of separating investment banking and retail operations. I don’t think that is an appropriate concept. We live in a world where medium-sized and large corporates require access to bank lending for a large number of banking activities but also for market operations. Exporters, for example, also use the markets to hedge their risks – so they’re re-shaping the risk on their balance sheet by changing the structure of their liabilities or their assets if they have claims arising from trade. For all these activities and risks, giving corporates access to banks which are able to respond to their entire commercial and investment banking needs is crucial for the development of the economy. On the other hand, what we don’t want to see is banks embarking on proprietary trading which is totally disconnected from their banking activities. The ideal approach is to have a clear separation between what we in France call "purely speculative activities" – in America they would call it "prop trading" – and what is useful for the financing of the economy.
To this end, the HKMA will be working with the universities and the other stakeholders to make sure they are aware of the knowledge and skills needed by the banking industry, so that graduates are prepared to thrive in this ‘brave new world of banking’. 31. For more than 50 years, HKIB has played a key role in nurturing talent and professionalism. Your membership is growing at a phenomenal rate. Your rich programme of courses, seminars and special events offers continuing professional development that is directly relevant to the transformations I have described this morning. Today’s conference is one of 4/5  BIS central bankers' speeches  the highlights of the banking year. My colleagues and I look forward to sharing with you, and learning from you as the day progresses. We wish you every success in the year ahead. 1 The Guangdong-Hong Kong-Macao Greater Bay Area. 2 Open Application Programming Interface. 3 Environmental, Social and Governance. 4 Hong Kong Association of Banks. 5/5  BIS central bankers' speeches