At present, and despite nearly three years of steady price deflation, this does not appear to be happening. Indeed, the experience last year of robust growth and moderate price decline underlines the point that price deflation and economic expansion are quite compatible under a linked exchange rate system. I have tried to place these complaints about the Link in a larger perspective. That is not to deny that the complaints have some validity. The Link does have shortcomings. It does impose restrictions. We should all have the courage to speak of and accept them, while not overlooking the advantages of the system. And there are two clear and simple advantages of overriding importance for Hong Kong. A stable exchange rate provides a predictable and conducive business environment for an economy that imports practically everything that it consumes, processes or re-exports. And, for a financial centre with strong international capital flows but no capital controls, linking our currency to a strong international currency provides stability and strength. Although not perfect, the Link has served Hong Kong well, and there is no better and less risky alternative. There is no intention or plan to change or abandon it. Given the renewed interest in the subject, and for the sceptics who remain, let me go the extra mile here for their benefit. Let me tackle the question of what would happen if Hong Kong were to depeg. Within the HKMA we think of this a great deal. This is not because we expect or intend it to happen.
On this subject of the “Eckert Act", the insurance companies monitored by the ACPR paid out EUR 2 billion to the beneficiaries of unclaimed policies in 2015; banks, for their part, transferred 5.5 million inactive bank accounts to the Caisse des dépôts et consignations in 2016, representing a total amount of EUR 1.9 billion to be claimed by the account holders or their beneficiaries. The fourth challenge is the fight against money laundering and the financing of terrorism, which in 2016 was a higher priority for action. We carried out 30 missions among banks and insurance companies on this subject in 2016, as against 22 in 2015. These missions complement the substantive action of the ongoing supervision, which resulted last year in close to 700 follow-up letters. In total, we initiated and published six disciplinary sanctions against institutions. The year 2016 was therefore an active year in this field, raising to 22 the number of sanctions taken since 2010 for noncompliance with the regulations. * * * In conclusion, it is with pride that I look at what was achieved in 2016, but without any let-up or complacency: many projects await us in 2017, both nationally and internationally. A strong ACPR must have the necessary means to accomplish its missions: I would like to emphasise this imperative. I will now give the floor to Bernard Delas, who will present the prudential developments in the insurance sector. Rémi Bouchez will then discuss the work of the Sanctions Committee. Thank you for your attention.