XN000022-1995-05-04 — Page 2

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More resources for financial sector development

The Chief Executive of the Hong Kong Monetary Authority (HKMA), Mr Joseph Yam, urged the Asian Development Bank to devote more resources to the development of the financial sector of developing member countries (DMCs) noting that the Bank's resources are likely to become tight.

Giving his speech before delegates to the 28th Annual Meeting of the Board of Governors of ADB being held in Auckland today (Thursday), Mr Yam said: "It is, I think, time for the Bank to consider positioning itself as a catalyst and promoter of development by directing more resources to improving the capability of DMCs to mobilise resources efficiently, both domestic and external."

He said the need for the Bank to put more emphasis on assisting DMCs in developing robust financial infrastructure was prompted by strong private capital inflows into this Region.

"Financial liberalisation and strong private capital flows, whilst undoubtedly beneficial, can be destabilising. The associated risks can only be minimised through adopting sound macroeconomic policies, and ensuring that the monetary and financial systems are adequately robust," said Mr Yam.

He noted that the Bank already is committed to assisting DMCs in the liberalisation of financial regimes, restructuring of banking system, adoption of prudential and sound banking regulation and deepening of capital markets.

"These are all worthy efforts, and I believe there is scope for the Bank to intensify such efforts through devoting relatively more resources to these areas," said Mr Yam.

Mr Yam is currently leading the Hong Kong delegation to the Annual Meeting, comprises also the Executive Director (External) of HKMA, Mr James H Lau Jr, and Head of the External Relations, Mr Eddie Yue.

End/Thursday, May 4, 1995