XN000022-1993-05-05 — Page 14

13

WEDNESDAY, MAY 5, 1993

1

TO

HOWEVER SIMPLE THESE FINANCIAL SYSTEMS AND MARKETS MIGHT BE, WHEN PROPERLY CONSTRUCTED THEY SERVED A USEFUL PURPOSE OF EFFECTIVELY CHANNELLING SAVINGS

PRODUCTIVE INVESTMENT, ENABLING THE MORE EFFICIENT USE OF MONEY AND PROVIDING A MECHANISM FOR SOME FORM OF MACRO ECONOMIC CONTROL WHICH MIGHT BECOME NECESSARY AS THE DEVELOPMENT PROCESS GAINED MOMENTUM, HE SAID.

"WHEN PROPERLY CONSTRUCTED AND SUPPORTED BY CREDIBLE FINANCIAL POLICIES, THEY MAY SERVE ALSO TO ATTRACT FOREIGN INVESTMENT AND ENCOURAGE THE INTERNATIONAL FLOW OF PRIVATE CAPITAL RESOURCES," HE SAID.

"IT MAY BE DIFFICULT TO QUANTIFY THE LIKELY BENEFITS OF SUCH AN EFFORT. IT IS PERHAPS MORE OF A CATALYST TO DEVELOPMENT RATHER THAN A STRATEGIC OBJECTIVE IN ITSELF.

לו

MR

"BUT SPEAKING AS THE MONETARY AUTHORITY OF A FINANCIAL CENTRE, I THINK IT IS CERTAINLY SOMETHING THAT DESERVES GREATER EMPHASIS, YAM SAID.

ON ADB'S DISCUSSIONS AND DIALOGUE WITH DMC GOVERNMENTS ON VARIOUS ASPECTS OF POLICY AND THE STATUTOR), REGULATORY AND FISCAL FRAMEWORKS THAT HAVE A BEARING ON THE GROWTH AND DEVELOPMENT OF THE PRIVATE SECTOR, MR YAM SAID:

DIALOGUE

COULD

BE

"PERHAPS THESE DISCUSSIONS AND INTENSIFIED AND EMPHASIS GIVEN TO THE DEVELOPMENT OF FINANCIAL SYSTEMS AND FINANCIAL MARKETS, WHERE THE BANK FEELS THAT THE CATALYTIC EFFECT I REFERRED TO HAS A HIGH LIKELIHOOD TO MATERIALISE IN

INDIVIDUAL DMC'S".

"[ AM SURE THERE ARE FINANCIAL EXPERTS IN THE BANK AND IN MEMBER COUNTRIES WHO ARE VERY CAPABLE OF GIVING ADVICE IN THIS FIELD AND ARE WILLING TO DO SO, HE ADDED.

PI

HE URGED THAT MORE TECHNICAL ASSISTANCE GRANTED BY THE BANK TO DMC'S FOR FINANCIAL ADVISORY SERVICES SHOULD BE CONSIDERED.

"THIS WILL BE MONEY WELL SPENT. AT MERELY US$5.59 MILLION IN 1992, THERE

IS

CLEARLY ROOM FOR EXPANSION IN THIS AREA, WITHOUT RISKING ANY SIGNIFICANT ADVERSE IMPACT ON OTHER ACTIVITIES OF THE BANK,

MR YAM SAID.

HE SAID THE TERRITORY WOULD PLAY ITS PART DEVELOPMENT OF FINANCIAL MARKETS.

IN ENCOURAGING THE

WHERE OUR EXPERIENCE MAY BE USEFUL FOR THOSE ARE MORE THAN WILLING TO SHARE IT," HE SAID.

INTERESTED, WE

KONG

CITING THE ISSUE OF DRAGON BOND AS EXAMPLE, MR YAM LOOKED FORWARD то MORE OF THIS ACTIVITY BY WOULD COMPLEMENT THIS WITH THE TERRITORY'S EFFORTS.

THE

SAID HONG

BANK AND

EARLIER IN HIS SPEECH, MR YAM BRIEFED FELLOW GOVERNORS OF THE BANK ON THE NEWLY ESTABLISHED HONG KONG MONETARY AUTHORITY.

/HE NOTED