MONDAY, NOVEMBER 8, 1993
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ROLE OF HK MONETARY AUTHORITY SPELT OUT
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THE MAINTENANCE OF THE STABILITY OF THE HONG KONG DOLLAR CURRENCY, IN TERMS OF ITS EXCHANGE RATE WITH THE U.S. DOLLAR, IS CLEAR AND FIRM GOVERNMENT POLICY, THE CHIEF EXECUTIVE OF THE HONG KONG MONETARY AUTHORITY (HKMA), MR JOSEPH YAM, SAID TODAY (MONDAY).
SPEAKING AT THE 12TH GRADUATION CEREMONY OF THE HANG SENG SCHOOL OF COMMERCE, HE SAID IT WAS THE RESPONSIBILITY OF THE HKMA то ACHIEVE THIS OBJECTIVE OF CURRENCY STABILITY.
THE LINKED EXCHANGE RATE SYSTEM, HE SAID, HAD SERVED HONG KONG VERY WELL SINCE ITS ESTABLISHMENT IN OCTOBER 1983.
HE
SAID THERE WERE OTHER MEASURES PUT TOGETHER SINCE THEN ΤΟ STRENGTHEN THE ABILITY TO MAINTAIN CURRENCY STABILITY.
"BASICALLY THESE MEASURES AIMED AT PUTTING OURSELVES IN A POSITION EFFECTIVELY TO INFLUENCE THE SUPPLY AND THE PRICE OF MONEY OR MORE PRECISELY WHAT WE CALLED INTERBANK LIQUIDITY."
THERE WAS QUITE A LOT OF TECHNICAL WORK INVOLVED REQUIRING PROFESSIONAL PEOPLE FAMILIAR WITH MONEY AND MONEY MARKETS AND IT WAS FOR THE PURPOSE OF GETTING THE NECESSARY SKILLS TO PERFORM THIS WORK THAT THE HKMA WAS ESTABLISHED, HE ADDED.
ANOTHER AREA OF WORK FOR THE HKMA, MR YAM SAID, WAS TO ENSURE THAT MONEY WAS AN EFFICIENT AND RELIABLE MEDIUM OF EXCHANGE.
"MONEY, NOT ONLY IN THE FORM OF BANK NOTES BUT ALSO IN THE FORM OF CHEQUES AND DIRECT TRANSFERS USING ELECTRONICS AND TELEGRAPHIC MEANS, IS USED FOR PAYMENTS EVERY SECOND OF THE DAY, AND THERE ARE MILLIONS AND MILLIONS OF TRANSACTIONS EVERY DAY, HE NOTED.
IN THIS AREA OF WORK HONG KONG HAD BEEN VERY WELL SERVED BY THE MANAGEMENT BANK OF THE CLEARING HOUSE OF THE HONG KONG ASSOCIATION OF BANKS AND OTHER SETTLEMENT BANKS, HE SAID,
"WE HAVE EFFICIENT AND RELIABLE PAYMENT SYSTEMS. BUT IN A PERIOD OF FINANCIAL INNOVATION THERE IS A NEED TO ENSURE THAT THIS CONTINUES TO BE THE CASE.
**THE RISKS, IF ANY, IN THE PAYMENT SYSTEMS NEED TO BE IDENTIFIED AND PROPERLY MANAGED.
"THIS IS A PRIORITY AREA OF WORK FOR THE HONG KONG MONETARY AUTHORITY, IN CONSULTATION WITH THE BANKING COMMUNITY," HE SAID. "IT IS LIKELY THAT WE MAY IN TIME COME UP WITH PROPOSALS FOR REFINING THE SYSTEMS.
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ANOTHER IMPORTANT AREA OF WORK FOR THE HKMA, MR YAM SAID,
WAS
BANKING SURPERVISION.
THERE ARE MANY BANKS IN HONG KONG, A TOTAL OF 170 LICENSED BANKS AND 316 IF REPRESENTATIVE OFFICES OF FOREIGN BANKS ARE INCLUDED.
"THIS PUTS US ONLY BEHIND LONDON AND NEW YORK. OUT OF THE LARGEST 100 BANKS IN THE WORLD, 79 ARE PRESENT IN HONG KONG," HE SAID, NOTING THAT BANKS IN HONG KONG WERE SUPERVISED IN ACCORDANCE WITH INTERNATIONALLY ACCEPTED STANDARDS.
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