XN000022-1997-04-30 — Page 11

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The Hong Kong banking sector remained well capitalised, highly liquid and profitable during 1996. Continued progress was made in developing the supervisory framework. A specialist team on derivatives was established and industry guidelines on risk management for derivatives and other traded instruments were issued. A reporting framework for market risk exposures of authorised institutions was introduced.

Further steps were also taken to improve the transparency of the financial position of authorised institutions and Hong Kong now leads the way in Asia in terms of financial disclosure. A Code of Banking Practice was drafted and amendments were introduced to the Banking Ordinance for the regulation of multi-purpose stored value cards.

Mr Joseph Yam, the Chief Executive of the HKMA, said: "We have taken the opportunity of this special year of transition to take stock of the work carried out by the HKMA. We cannot be complacent and we shall endeavour to strengthen our efforts to maintain monetary and financial stability and to keep Hong Kong as a premier international financial centre.'

To further widen the readership of the report and to promote understanding of the work of the HKMA, the 1996 Annual Report will be available on the Internet.

End

1998 Review of television environment

Interested parties have been invited to suggest topics to be covered by the 1998 review of the television environment, a spokesman for the Broadcasting, Culture and Sport Branch said today (Wednesday).

The Government will carry out a comprehensive review of the regulatory framework in 1998, and as the first step, the Branch is seeking views on which issues should be addressed by the review.

"We would welcome suggestions on framing the scope of the review as it is an important task which may lead to changes in both policy and legislation", the spokesman said.