It is also evident that the reputations of the credit rating agencies have become tarnished, but how much of this can be remedied through regulation is not so clear. In addition, the trading, clearing and settlement of certain derivatives has been carried out in such a way that insight has been poor and counterparty risks have been substantial. There is thus reason for the authorities to press for the development of the underlying infrastructure of, for instance, OTC-traded derivatives. Many ideas regarding what needs to be done to reduce the risk of future crises will probably be put forward over the coming six months. Let us hope that the wise and well-reasoned proposals will be the ones that are implemented. Crisis management I would also like to touch briefly on some crisis management issues. Good preparedness and good preparations are the be-all and end-all of crisis management. Both in Sweden and other EU countries, and in particular in the United States, it has been necessary on this occasion to improvise measures to a great extent in the management of the financial crisis. This is of course not exactly desirable. Experiences of earlier crises point to improvised measures often coming too late and costing more than ought to have been necessary. It is as yet too early to say what the outcome of the measures taken now will be, but there are nevertheless some bright spots.
This broad membership makes the TMA the authoritative industry association and focal point for treasury matters in Hong Kong. I am also glad that there are four committees established to focus on the four key areas that I have spoken about. We at the HKMA consider the TMA an important new element of our financial infrastructure. We are confident that the TMA will play a pivotal role in the maintenance of the status of Hong Kong as an international financial centre. May I congratulate you all on today's inauguration a nd wish you all the very best for the future. 2  BIS Review 4/2006