is important that the Commissioner should develop
the same sort of relations with the People's Bank as
he enjoys with other supervisory authorities such as
the Federal Reserve, the Bank of Japan and the Bank
of England. This relationship is essential on day to day matters, about problems which may arise and particularly regarding any further entries into the
Hong Kong market.
50.
the
an
Three other factors will affect
supervisory role in Hong Kong. The first is the
agreement reached at the end of the year between the
United States authorities and the Bank of England
regarding the assessment of capital adequacy and
the establishment of minimum capital standards on
international basis. Although important in itself,
it will be of even greater significance if the
agreement is extended to other authorities and, in
particular, Japan. Hong Kong's standards will be examined in the light of the agreement. The second
factor is the development of "off-shore" banking and
implications for Hong Kong as a financial centre.
The third factor embraces part of the second,
namely, the relationship between securities' trading
and banking where new market boundaries are being
established and where the new market is interbank
rather than stock exchange based.
51.
All three factors impact on the existing
three-tier system. More deposit-taking institutions
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