Depending on factors such as the severity of the problems and the responsiveness of management,  BIS Review 76/2006  3  the Federal Reserve uses the range of methods at its discretion - from offering recommendations in an exam report, to entering into confidential supervisory actions, to the taking of formal public enforcement actions. Third, we need to continue to increase coordination among regulators, both internationally and within the U.S. This will lead to a greater consistency in the overall supervisory approach that is followed, as well as more consistency in the messages conveyed to individual firms. •  Coordination in development of policy is important. As an example, in 2005, the Basel Committee published a high-level paper on compliance risk and the compliance function in banks that supervisors around the world are making use of. •  On a more firm-specific level, we, as a host supervisor, look to have effective coordination and communication with the home country supervisor - particularly when we find a serious problem, such as a significant compliance issue. It is our policy to share our concerns with home country supervisors, so that they will not be surprised and, even more importantly, will be able to make judgments on the implications of our US findings for the global organization. In certain circumstances, this could lead to very explicit and public coordination of enforcement actions with home country supervisors.
Joseph Yam: One country, two financial systems Speech by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the luncheon of the British Chamber of Commerce, Hong Kong, 20 October 2006. *  *  *  Ladies and Gentlemen, Thank you for inviting me to speak to you today on the subject of "One Country, Two Financial Systems". The continuing strong British presence in Hong Kong since 1997 - in all areas of business and society – has been one of the many positive features of the "one country, two systems" policy: it is also a measure of the success of this policy. The British Chamber of Commerce in Hong Kong has played a leading role not only in representing the interests of British companies in Hong Kong, but also in promoting Hong Kong to the world. The British commercial presence in Hong Kong is a rich and diverse one, covering a vast range of economic activities. These include, of course, the everexpanding financial services sector, which benefits both from Hong Kong’s dense economic connections with the Mainland of China, as well as from the "one country, two systems" policy. It is this subject that I now wish to explore with you. I believe it was Deng Xiaoping who first coined the phrase "one country, two systems".