At the outset of the global crisis, the average private debt level reached around 96% of GDP (2009), doubling compared to 2000. The post-crisis adjustment was mostly visible in the Baltic countries, where half of the pre-crisis rise was reversed. In the CEE and SEE countries, the adjustment was lesser. According to the latest available data (2017), given the decoupling in the speed of the post-crisis adjustment, private debt level in the different sub-regions started to converge. The average private debt level in 2017 stood at around 82% of GDP, with Baltics hovering at around 90%, SEE at 84%, and in the CEE region, standing at 75% of GDP. 4  Chart 3. Total private debt  Chart 4. Change in private debt to GDP ratios  (in % of GDP)  (in percentage points)  140.0 120.0 100.0 80.0 60.0  CEE  SEE  Baltics  Region  2016  2014  2012  2010  2008  2006  2004  2002  40.0  *Region refers to all the countries in the sample from CEE, SEE and the Baltics. Source: IMF Global debt database. The crisis accentuated the risks of high private sector indebtedness as important source of macro-financial vulnerability. In the CESEE region, some of these risks came to the fore in their banking systems, in the form of significantly rising NPLs during the crisis, following the years of high credit growth.
Hong Kong is now a relatively clean city with not a lot of garbage on the streets, which is in sharp contrast to the widespread littering of 30–40 years ago. Many people believe that the reason for this welcomed change is the improvement by the Government in its streetcleaning procedures as well as enhanced efforts to catch and fine people who are found littering. But this can only explain a small part of the change. The key driving force, in my view, that makes Hong Kong streets much cleaner today is the change in people’s values. These days, most Hong Kong citizens do not litter the streets not because they are afraid of being caught by the health inspectors but because they don’t think it is right or proper to do so. This change of culture or values is the result of education of the young generation and the “Clean Hong Kong Campaign” that was launched by the Hong Kong Government back in the 1970s. If this had not been the case, our streets would still be filthy even if we had ten times more health inspectors and street cleaners. In the context of building the financial services sector that befits a world-class IFC, I have explained earlier why it is very important to have professional competence and good control. However, it is equally, if not more, important that our financial institutions and their practitioners uphold the right values that protect and serve the interests of the customers who make use of Hong Kong’s financial services.