FINANCIAL AND MONETARY AFFAIRS
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The work of the Official Receiver where he acts as trustee or liquidator includes the investigation of the affairs of the bankrupt or the wound-up company, the realisation of assets and the distribution of dividends to creditors. The Official Receiver also prosecutes certain offences set out in the Companies and Bankruptcy Ordinances. In addition, he supervises the work of outside liquidators and trustees.
During the year, staff adapted smoothly to handling cases under the new 'overall case management' system introduced in June 1992. Efficiency, productivity and accountability have improved in the Official Receiver's office. This has resulted in increases in the amount of dividends declared and payable, book debts recovered and in the number of bankruptcy and winding-up cases completed. There has also been an increase in the number of summonses issued and the amount of fines awarded by the courts for failure to file statements of affairs in liquidations.
During the year, the courts made 329 receiving orders and 408 winding-up orders, an increase of 15.7 per cent over the previous year. The assets realised by the Official Receiver during 1993 amounted to $157.4 million, while $179.38 million in dividends were paid to creditors in 251 insolvency cases. A total of 66 convictions were obtained and the total amount of fines imposed by the courts was $326,458.
Establishment of the Hong Kong Monetary Authority
- To maintain the continuity and professionalism in Hong Kong's monetary and reserves management and banking supervision, in a way which commands the confidence of the people of Hong Kong and the international financial community, the Hong Kong Monetary Authority (HKMA) was established in April by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. The Exchange Fund (Amendment) Ordinance 1992, providing for the establishment of the HKMA, was enacted on December 10, 1992 and came into operation on April 1, 1993.
The HKMA is responsible for the development and execution of monetary policy; maintenance of exchange rate and monetary stability; the development of the debt market in Hong Kong; promoting the efficiency, integrity and development of payment and settlement arrangements; managing the assets of the Exchange Fund; prudential supervision of authorised institutions under the Banking Ordinance; and formulating policies relating to banking supervision. These functions are now carried out by its four departments: the Monetary Management Department, Reserves Management Depart- ment, Banking Policy Department and Banking Supervision Department. A fifth, the External Department, will be set up in 1994 to develop contacts and co-operation with other central banks and multilateral financial institutions, strengthen the HKMA's research capabilities and monitor international monetary developments.
The HKMA is an integral part of the government, but is able to employ staff on different terms to those of the civil service to attract personnel of the right calibre, experience and expertise. The staff and operating costs of the HKMA are charged directly to the Exchange Fund, instead of the general revenue.
The HKMA is accountable to the Financial Secretary, who is advised by the Exchange Fund Advisory Committee on matters relating to the control of the Exchange Fund. The involvement of the committee in monetary and investment matters has become much stronger. It functions very much like a management board, and advises the Financial Secretary on the annual budget of the HKMA.