Joseph Yam: Hong Kong Institute of Bankers Beijing Representative Office Address by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the inaugural ceremony and dinner, Beijing Representative Office of the Hong Kong Institute of Bankers, Beijing, 10 June 2005. *  *  *  Chairman Liu, Vice Governor Xiang, Mr Sullivan, Ms Li, ladies and gentlemen, I would like to thank the Institute of Bankers for inviting me to attend this inaugural ceremony of its Beijing Representative Office. On behalf of the Hong Kong Monetary Authority, I would like to extend our warmest congratulations to the Institute for making a major step in its development. As we all know, the savings rate in Mainland China is among the world’s highest, accounting for more than 40% of its GDP. The effective channelling of private-sector savings into fixed-assets investments is a major function of the financial system. Such is also an important responsibility of the many employees engaged in the normal workings of the financial system. The proper functioning of the financial sector, with effectiveness in financial intermediation, is crucial for the promotion of economic growth and development. Mr Deng Xiaoping once said, “Finance is very important; it is the core of modern economics.” Presently Mainland China relies preponderantly on the banking system in intermediating funds. Last year bank financing remained the most important channel for raising new funds for the non-government non-financial sector, accounting for over 90% of total funds raised.
This requires not only the development of innovative technology-based deterrents and pro-active detection systems, but also effective cooperation between the public and private sector, law enforcement domestically and across borders. We stand ready to work alongside all key stakeholders, in both the public and private sectors, local and abroad, to ensure our financial sector is resilient to face the threat of terrorism financing within the country and in the region. 3/3  BIS central bankers' speeches