Furthermore, technology has now improved to the extent that we do not really need centralized clearing and settlement systems. I have long supported the concept of Asiaclear as a network of linkages of domestic clearing, settlement and depository systems. 56. Again, we in the Hong Kong Monetary Authority made a start in building this network through establishing bilateral linkages between our clearing system for debt securities called CMU and other systems. Our system is now linked up with Euroclear and Cedel, and we are working on linkages with corresponding systems in Australia, New Zealand and the Mainland of China. Once the matrix of bilateral linkages is filled up, the network of Asiaclear would be formed, like the Internet. There is no need for a centralized system or even a location. There is no centre for that network and so we do not need to get into the politically difficult question of where the network should be headquartered. We have also expressed our interest to other central banks in the region to establish similar linkages of payment systems. Our payment system in Hong Kong is already on the BIS Review 91/1997  - 12 -  real time gross settlement (RTGS) mode. Others are proceeding with building their RTGS systems and as soon as they are ready we are happy again to work on establishing bilateral linkages to facilitate risk management of large value financial transactions across the two monetary systems.
Phase three will see the information sharing between participating banks when there is an update of customers' data for AML/Know Your Customer compliance purposes or when a new customer is onboarded and such person is already a customer of a participating bank. Finally, Phase four will deal with information sharing between participating banks for the purpose of account switching. The CBC is committed to make the project work as the benefits to all stakeholders and especially bank customers will be tangible in terms of cost and time savings. This will benefit the entire Cypriot economy including the banks themselves. Having said this, I wish to emphasise that digitisation on its own does not bring full efficiencies or solve the issues I mentioned earlier. The Association of Cyprus Banks and the CEOs and Chairmen of banks must make the necessary internal changes and training to make servicing of clients more efficient. Let me be clear, European banking regulations are the same across Europe. That's why they are called European. Hence differences on banking practices and efficiencies are because of banks' management and their practices. The Cyprus banking sector practice is less efficient than European counterparties. As I mentioned before, it's time for banks and stakeholders to act. In conclusion,  4/5  BIS - Central bankers' speeches  The world's economic system has been through a lot in recent years, from the challenge of the pandemic to the impact of the war in Ukraine.