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WEDNESDAY, JUNE 1, 1994
THE
THAT AT THE END
ON THE MANAGEMENT OF THE EXCHANGE FUND, MR YAM NOTED SIZE OF THE FUND STOOD AT HK$348 BILLION (US$45 BILLION) OF 1993, REPRESENTING A 21 PER CENT INCREASE OVER 1992.
HOWEVER, THAT 1994
MR YAM CAUTIONED,
WAS LIKELY TO BE A DIFFICULT YEAR IN THE MANAGEMENT OF RESERVES BECAUSE OF THE ADVERSE IMPACT OF RISING INTEREST RATES ON BOND PRICES.
FUND.
"THE EXCHANGE FUND CONTINUES TO HOLD BONDS AND A SMALL AMOUNT MAXIMISING RETURN IN OF EQUITIES AS THIS IS THE CORRECT APPROACH TO THE LONG RUN FOR A CONSERVATIVE
BUT WE HAVE ALREADY TAKEN EFFECTS OF RECENT DEFENSIVE MEASURES TO REDUCE THE POSSIBLE ADVERSE MARKET MOVEMENTS ON OUR PORTFOLIO," HE SAID.
TURNING TO THE SUPERVISORY ROLE OF THE MONETARY AUTHORITY IN SAFEGUARDING THE STABILITY AND INTEGRITY OF THE BANKING SYSTEM IN
YAM HONG KONG, ME
NOTED THAT THE НКМА HAD BEEN INCREASING THE INTENSITY OF ITS OPERATIONAL SUPERVISION.
THE
LARGE
IT HAD ALSO BEEN FOCUSING ITS ATTENTION ON OVER-SUBSCRIPTION OF NEW SHARE ISSUES, MORTGAGE LENDING INTRODUCTION OF NEW LIQUIDITY REQUIREMENTS AND OTHER SUPERVISORY ISSUES LIKE
+
NETTING, INTEREST RATE RISK, MARKET RISK, FINANCIAL DISCLOSURE
AND LOAN CLASSIFICATION
"THE GUIDING PRINCIPLE
I
MR
IS ΤΟ ENSURE THAT THE SUPERVISORY SYSTEM IN HONG KONG REMAINS IN LINE WITH INTERNATIONAL STANDARDS, YAM SAID.
THE HKMA ALSO CONSIDERS INTERNATIONAL FINANCIAL CENTRE FINANCIAL INFRASTRUCTURE.
IT TO
IN HONG KONG'S INTEREST AS AN PROMOTE THE DEVELOPMENT OF THE
SETTLEMENT
SHOULD MOVE BASIS. MEANWHILE, A NUMBER OF HAVE BFEN IDENTIFIED FOR
"A WORKING PARTY ON THE PAYMENT AND SETTLEMENT SYSTEM CONCLUDED THAT HONG KONG'S PAYMENT AND SETTLEMENT SYSTEM ON TO A REAL TIME GROSS INTERIM RISK MANAGEMENT MEASURES IMPLEMENTATION IN 1994,' MR YAM SAID.
T
WHEN ASKED ABOUT THE AGENDA OF THE HKMA IN THE LEAD-UP TO 1997, MR YAM SAID: "THERE ARE MANY OTHER MATTERS, ON BOTH THE MONETARY AND THAT LEGISLATION, SUPERVISORY FRONTS, MAINLY CONCERNING THE RELEVANT NEED TO BE ADDRESSED IN THE TRANSITIONAL PERIOD. I AM CONFIDENT THAT THESE CAN BE DEALT WITH, AS IN THE PAST, SMOOTHLY AND EXPEDITIOUSLY.
TL
THE HKMA'S 1993 ANNUAL REPORT WILL BE ON SALE FROM TOMORROW (THURSDAY) AT THE GOVERNMENT PUBLICATIONS CENTRE AT $138 A COPY.
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