For example, we hear often that the Hong Kong financial markets provide a perfect hedge, or more modestly, a proxy hedge, for risks in the Mainland of China or the region. There is an element of truth in this. After all, this is one of the roles of an international financial centre. But it does mean that, in Asia, the dynamics of financial contagion can be quite complex. For example, financial crises do not necessarily erupt and manifest themselves at source - somebody sneezes and others get pneumonia. So, it is only prudent that Asian monetary co-operation should be on the agenda of discussions on Asian finance, and I have been urging for greater co-operation for some time. I am therefore glad that there has been increasing attention given to the subject in recent years. But, in terms of actual co-operative initiatives, progress has been slow and the scope rather narrow. To be fair, there is consensus on the need for diversification of financial intermediation channels, for enhancing efficiency and financial stability, and this consensus has been manifested in co-operative efforts to develop the bond markets in Asia. There are three clusters of initiatives:  2  "What is driving Asian exports? ", HKMA, August 2003.
Niklaus Blattner: Switzerland’s real estate market Introductory remarks by Mr Niklaus Blattner, Vice-Chairman of the Governing Board of the Swiss National Bank, at the end-of-year media news conference, Zurich, 15 December 2005. *  *  *  Competition in the Swiss real estate market has undoubtedly become stiffer in recent times. This is basically a good thing. Moreover, different market players and other observers have been pointing out for some time now that banks have not only become more competitive, but also less cautious. Mortgage lending is part of the banks’ core business. The Swiss National Bank (SNB) therefore decided to analyse the current situation and development in the Swiss real estate market in more detail. The SNB is mandated to contribute to the stability of the financial system. The question asked was the following: Are there any signs that the fiercer competition in the real estate market is associated with excessive risks which may ultimately threaten the stability of the banking system? The National Bank’s analysis is based on both statistical data regarding banking activity and on the results of a survey conducted among a number of banks specifically for this purpose. The random sampling covers banks with a total market share of over 70%. The main result of our survey shows that stronger competition in the real estate market has so far not had a destabilising effect on the banking sector in Switzerland.