As discussed over the past two days, many economies in Asia have been working on this, as this reform is important not only to derivative markets, but also to bank lending. The HKMA has actively engaged our banks to identify their exposures to the benchmark rates of relevance (i.e., LIBOR and HIBOR) and to prepare for various scenarios that could play out during this process. At the same time, the Treasury Markets Association in Hong Kong has proposed HONIA as an alternative risk free overnight reference rate to HIBOR and is consulting industry stakeholders. I should take this opportunity to mention that ISDA’s leadership on two important implementation issues – namely, how to adjust new overnight reference rates for longer tenors and how to ensure credit risk premiums are reflected – helped pave the way for constructive discussions in Hong Kong. So overall, progress is being made. Managing the Risks in Financial Market Development Whether it’s facilitating fintech innovations or deepening derivatives markets, it’s critical that a robust and adaptive regulatory framework and effective international coordination are in place to mitigate potential financial stability risks. The types of regulatory framework would depend on the stage of development in the market itself. For markets that are going through innovation, particularly those that are adopting new technologies, regulations should focus on “nurturing” rather than “restraining”.
Rodrigo Vergara: Chile’s latest Monetary Policy Report Presentation by Mr Rodrigo Vergara, Governor of the Central Bank of Chile, before the Finance Commission of the Honorable Senate of the Republic, Santiago de Chile, 2 April 2013. *  *  *  The Monetary Policy Report of March 2013 can be found at http://www.bcentral.cl. Introduction Mr. President of the Senate’s Finance Commission, senator Andrés Zaldívar; senators members of this Commission, ladies and gentlemen. Thank you for inviting me to present the view of the Bank’s Board on recent macroeconomic developments, together with the macroeconomic outlook and its and monetary policy implications. This view is contained in detail in our March 2013 Monetary Policy Report. There is no doubt that the Chilean economy is in good standing. In a complex international context where growth in the developed world is still sluggish and particularly the Eurozone continues in recession, Chile continues to grow at over 5 percent annually, unemployment has fallen and inflation remains low. In these circumstances we must avoid complacency and be alert to the risks facing our economy to reduce their likelihood of occurrence, or otherwise be prepared to deal with them in the best way possible. Precisely our Monetary Policy Report traditionally analyzes the baseline scenario, and also risk scenarios. International economic conditions, while still complex, have improved in recent months from the deteriorated conditions of the first half of 2012.