Industry uses payment systems to provide payment services to customers, to innovate and develop new products for users. And industry can help central banks in undertaking the assessments of access and operating hours by collaborating, sharing insights and feeding into consultations and dialogue. To meet the FSB targets there is also a practical role for the industry to respond to the building block actions and reports, with some requiring direct action. This might include: (i) investing in new technologies, (ii) preparing for changing operational procedures and (iii) adapting business models. The role of public authorities And there is a crucial role for the wider public authorities. Central banks changing systems and policies and industry investing in changing operational procedures are just two pieces of the puzzle. There are also important regulatory, legislative and other barriers that overcome on a  Page 8  national and international level. For example, finance ministries will need to prepare legislative change to deliver the benefits of the roadmap (e.g. on AML/CFT standards, data frameworks and settlement finality protections). And international standard setting bodies will need to ensure that these standards are aligned on a global level. The financial system is global, with many of the most important issues requiring the involvement of international public authorities. The FSB, CPMI, the BIS Innovation Hubs, and a range of other standard setting bodies will have a continued important role to play to reach the quantitative targets for cost, speed, access and transparency of cross-border payments.
The global roadshows of the Government sukuk will also provide an ideal opportunity for us to reach out to global investors and showcase our credit strengths and Islamic finance capability. 16. As the Government’s representative under the Government Bond Programme, the HKMA is now working closely with the Government to prepare for the inaugural issuance of Government sukuk. A detailed issuance plan is being devised with reference to international practices and market conditions. According to our current plan, the inaugural Government sukuk would be based on the Ijarah structure and target institutional investors globally. What’s in it for fund raisers to issue sukuk? 17. As I have mentioned earlier, the key objective of the Government sukuk is to play a catalytic role, paving the way for local and international fund-raisers, no matter from the public or private sector, to follow suit. 18. For the potential sukuk issuers sitting here today, you may wonder what benefits you will get by issuing sukuk. Well, let me highlight two key benefits here. 19. First, you would be able to broaden your investor base. By issuing conventional bonds, you will only be able to tap conventional investors. But by issuing sukuk, you will be able to get both conventional and Islamic investors to participate. In particular, issuing sukuk will help you to gain access to the large pool of liquidity in the Middle East and other Islamic countries, where investors are progressively looking for Shariah-compliant assets in this part of the world.