XN000022-1996-09-09 — Page 2

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HK invited to join Bank for International Settlements

The Hong Kong Monetary Authority (HKMA) has been invited by the Bank for International Settlements (BIS) to become a member by subscribing to its shares.

The invitation came after the Board of Directors of BIS met today (Monday) in Basle, Switzerland. The offer also extended to eight other central banks and monetary authorities, marking BIS's decision to enlarge its membership first time in 25 years.

Formalities related to the subscription of BIS shares will be completed in the next few months.

"This is very good news for Hong Kong," said the Financial Secretary, Mr Donald Tsang.

"The invitation to join the BIS is a clear recognition of Hong Kong's status as a leading and autonomous international financial centre and Hong Kong's increasingly active role in co-operation among central banks."

BIS was incorporated in 1930 to promote co-operation among central banks. Based in Basle, BIS is a prestigious bank for central banks. It has developed standards for banking supervision and payment systems that Hong Kong and most countries in the world have recognised and followed.

Taking up BIS shares will formalise Hong Kong's long association with the institution that has intensified in recent years.

Hong Kong is one of the 12 founding members of the Offshore Group of Banking Supervisors formed in 1980 at the instigation of the Basle Committee on Banking Supervision.

"As a member of the BIS, the HKMA will be able to participate more fully in BIS activities and policy discussions," the Chief Executive of HKMA, Mr Joseph Yam, said.