Following Prof. LIU Chun’s brief opening remarks, Charles Haswell delivered a speech themed “Building an Appropriate Financial System”. For a start, he shortly reviewed the history of finance, different understandings of the role of currency and the origins of the banking system. “The failure of most decision makers to foresee the crisis,” he pointed out, “is partly because the central banks didn’t fully realize the importance of creating endogenous liquidity within the system”. He believed that the main task of the central bank is to supervise price and the line of credit. This was suggested by British Financial and Industry Council 82 years ago, but it’s still relevant. He mentioned that a simple, transparent and predictable mechanism to supervise the credit line is to set a target for the leverage ratio.