I am well aware that it raises substantial questions, for banks themselves – for their governance, their brands, their relationships with customers – as well as for deposit guarantee schemes. On this latter issue, the current legislative framework needs to be revised in order to remove the strict limitations on the transfer of past contributions to the new DGS in the case of a branchification. These questions are all the more reasons to seriously investigate this option with the banking industry, as soon as possible. 2. Finding alternatives to EDIS.On the “third pillar” of the Banking Union, we must acknowledge the intractable oppositions to a fully-fledged EDIS, and adopt a more realistic 2/4  BIS central bankers' speeches  approach. By changing the name and the content, perhaps we could regain momentum and willingness to make progress together. We could call it the “Common deposit mechanism”. It would combine a well-known idea with a new one: (i) the well-known idea of a liquidity support system between national DGSs, – and obviously ensuring that each of them is funded as expected – combined with (ii) a renewed approach, in which foreign subsidiaries would be affiliated to the home DGS. The first leg of this new tool would already provide increased funding possibilities. The second leg would provide a serious safeguard to host countries, as they would not bear the cost in the event of an idiosyncratic crisis. 3. Completing the resolution framework. The third pillar – deposits – has been excessively polarising discussions for years.
Arthur Yuen: Promoting economic and social development in Asia Welcome remarks by Mr Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (on behalf of Mr Norman Chan, Chief Executive of the Hong Kong Monetary Authority), at the seminar on "President Jin Liqun on the Asian Infrastructure Investment Bank’s Operations and Projects", Hong Kong, 8 November 2016. * * * President Jin, distinguished guests, ladies and gentlemen, Good morning. It is my pleasure to welcome you to this seminar on the Asian Infrastructure Investment Bank (AIIB)’s Operations and Projects, organised by the HKMA Infrastructure Financing Facilitation Office (IFFO). On behalf of the HKMA, I’m honoured to welcome President Jin to Hong Kong to meet with leaders from the financial and business sectors who have an interest in infrastructure project planning and management. I am delighted to see the strong level of interest and the diversity of business leaders represented in the field. AIIB is an important establishment in promoting economic and social development in Asia. Boasting an initial capital of $ billion and a founding membership of 57 countries, AIIB came into operation in January 2016 with a mandate in the development of infrastructure and other productive sectors in Asia, including energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, urban development and logistics. As we are all aware, President Jin has played an instrumental role in shaping up the formation and the guiding principles of AIIB.