XN000022-1994-01-24 — Page 9

MONDAY, JANUARY 24, 1994

NEW REGIME TO SUPERVISE BANKING LIQUIDITY

THE

HONG KONG MONETARY AUTHORITY (HKMA) HAS FINALISED A NEW REGIME FOR THE SUPERVISION OF LIQUIDITY.

A POLICY PAPER SETTING OUT DETAILS OF THE NEW REGIME HAS BEEN ISSUED TO ALL AUTHORISED INSTITUTIONS UNDER THE BANKING ORDINANCE.

FI

"THE NEW REGIME HAS BEEN REACHED AFTER EXTENSIVE CONSULTATION WITH THE BANKING INDUSTRY, DEPUTY CHIEF EXECUTIVE (BANKING), MR DAVID CARSE, SAID TODAY (MONDAY).

TO THE LOCAL AND FOREIGN

"IN DEVISING THE NEW SYSTEM, WE HAVE GIVEN DUE REGARD NEED TO MAINTAIN A LEVEL PLAYING FIELD BETWEEN INSTITUTIONS."

UNDER THE NEW REGIME, THE HKMA WILL USE A APPROACH TO ASSESS THE ADEQUACY OF LIQUIDITY.

MORE

COMPREHENSIVE

IT WILL HAVE REGARD TO A VARIETY OF FACTORS, INCLUDING LIQUIDITY RATIO, MATURITY MISMATCH PROFILE, ABILITY TO BORROW IN THE INTERBANK MARKET, DIVERSITY AND STABILITY OF DEPOSIT BASE, LOAN ΤΟ DEPOSIT RATIO, AND INTRA-GROUP CLAIMS.

IVES

MR CARSE SAID THE NEW REGIME AIMED TO ACHIEVE TWO OBJECTIVES.

"FIRST, IT WILL HELP TO ENSURE THAT INSTITUTIONS CAN MEET THEIR OBLIGATIONS WHEN THEY FALL DUE. SECONDLY, IT WILL PROVIDE GREATER ASSURANCE THAT GENUINE LIQUIDITY WILL BE GENERATED ΤΟ PROVIDE A BREATHING SPACE IN CASE OF FUNDING DIFFICULTIES, HE SAID.

H

THE NEW REGIME WILL COME INTO OPERATION ON JULY 1 THIS YEAR. INSTITUTIONS ARE REQUIRED TO FORMULATE THEIR OWN LIQUIDITY MANAGEMENT POLICIES AND SUBMIT DRAFT POLICIES TO THE HKMA FOR ITS COMMENT BY END OF MARCH 1994.

IN

THE

THE INTRODUCTION OF THE NEW REGIME WILL NOT INVOLVE ANY CHANGE PRIMARY LEGISLATION, BUT IT IS NECESSARY TO REVISE THE FOURTH SCHEDULE TO THE BANKING ORDINANCE. THE REVISION WILL BE MADE THE IMPLEMENTATION DATE.

BEFORE

0

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LAB DISCUSSES RECOMMENDATIONS ON LABOUR RELATIONS SYSTEM

MEMBERS OF THE LABOUR ADVISORY BOARD DISCUSSED RECOMMENDATIONS ARISING FROM THE RELATIONS SYSTEM IN HONG KONG.

(LAB) TODAY (MONDAY) REVIEW OF THE LABOUR

DURING THE MEETING, DIVERSE VIEWS WERE EXPRESSED ON THE RECOMMENDATIONS AIM ΤΟ IMPROVE THE PRESENT DISPUTE SETTLEMENT PROCEDURE AND EMPLOYEES' RIGHTS.

LAB CHAIRMAN AND THE COMMISSIONER FOR LABOUR, MRS TOLD MEMBERS THAT THE LABOUR DEPARTMENT WOULD STUDY THOROUGHLY BEFORE DECIDING ON THE WAY FORWARD.

FOK,

KATHERINE VIEWS

THE

/MEMBERS ALSO