XN000022-1992-10-22 — Page 2

THURSDAY, OCTOBER 22, 1992

MONETARY AUTHORITY LAW GOES TO LEGCO IN NOVEMBER

THE

A BILL AMENDING THE EXCHANGE FUND ORDINANCE WILL BE PUT BEFORE LEGISLATIVE COUNCIL ON NOVEMBER 4 TO PROVIDE FOR THE ESTABLISHMENT OF THE MONETARY AUTHORITY, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (THURSDAY).

THE BILL WILL ALSO PROVIDE FOR AN EXTENSION TO THE USE OF THE EXCHANGE FUND FOR THE SECONDARY PURPOSE OF MAINTAINING THE STABILITY AND INTEGRITY OF THE MONETARY AND FINANCIAL SYSTEMS.

SPEAKING AT A PRESS CONFERENCE, MR NENDICK SAID AS THE GOVERNOR ANNOUNCED IN HIS ADDRESS TO THE LEGISLATIVE COUNCIL ON OCTOBER 7, THE GOVERNMENT HAD DECIDED THAT THE TIME HAD COME TO ESTABLISH A HONG KONG MONETARY AUTHORITY (HKMA) WITHIN THE FRAMEWORK OF THE EXECUTIVE-LED GOVERNMENT.

THE

"THE OFFICE OF THE EXCHANGE FUND AND THE OFFICE OF COMMISSIONER OF BANKING WILL BE BROUGHT TOGETHER TO FORM A NEW HONG KONG MONETARY AUTHORITY.

"THE NEW ORGANISATION WILL HAVE THE NECESSARY FLEXIBILITY TO DEPLOY STAFF AND OTHER RESOURCES WITHOUT BEING SUBJECT TO THE CONSTRAINTS OF RESOURCE ALLOCATION AND PERSONNEL PROCEDURES APPLICABLE TO OTHER GOVERNMENT DEPARTMENTS," MR NENDICK SAID.

"THIS WILL ENHANCE OUR ABILITY TO IMPLEMENT AND ACHIEVE OUR MONETARY POLICY OBJECTIVE OF MAINTAINING EXCHANGE RATE STABILITY," ADDED.

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"THE NEW ARRANGEMENTS WILL ALSO HELP MAINTAIN THE DEGREE OF PROFESSIONALISM AND CONTINUITY NECESSARY TO COMMAND THE CONFIDENCE OF THE PUBLIC AND THE INTERNATIONAL FINANCIAL COMMUNITY, HE SAID.

EXECUTIVE

THE HKMA WOULD BE HEADED BY A CHIEF ACCOUNTABLE TO THE FINANCIAL SECRETARY.

AND

BE

THE FINANCIAL SECRETARY WILL REMAIN AS CONTROLLER OF THE EXCHANGE FUND AND RETAIN HIS STATUTORY POWERS UNDER THE EXCHANGE ORDINANCE.

FUND

THE POWERS OF THE COMMISSIONER OF BANKING UNDER THE BANKING AND OTHER ORDINANCES WILL BE VESTED IN THE MONETARY AUTHORITY.

INITIALLY THE HKMA WILL BE STAFFED MAINLY BY CIVIL SERVANTS SECONDMENT WITHOUT ANY CHANGE TO THEIR PAY AND CONDITIONS OF SERVICE.

ON

HOWEVER, THE HKMA WOULD BE ABLE ΤΟ EMPLOY STAFF ON TERMS DIFFERENT FROM THOSE OF THE CIVIL SERVICE IN ORDER ΤΟ ATTRACT AND RETAIN HIGH CALIBRE STAFF WITH THE RIGHT EXPERIENCE.

TO GIVE STATUTORY EFFECT TO THE NEW ARRANGEMENTS, THE EXCHANGE FUND (AMENDMENT) BILL 1992 WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON NOVEMBER 4.

/"THE INCLUSION

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