TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 37

1990-09-10 17:07

DEL

TUKI

CONFIDENTIAL

4

45 24 98 37

P.05

C/NM(90)22 (1st Revision)

B. Areas of Co-operation

9.

Now that the exploratory phase is over, the informal dialogue with the DAES needs to be deepened in some of the areas covered by the Informal 1 Workshops and broadened to a few other sectors, it is suggested that the

? feasible activities described below should take place within 10-12 months.

a)

Deepening the Informal Dialogue with DAES

10. While it is true that none of the OECD's fields of activity ought to be excluded from the dialogue with the DAES, the discussions in the Informal Workshops on specific topics did show: that in the opinion of the participants, these Workshops were of interest and useful to both the DAES and the OECD countries; that they had by no means been exhausted; and that the informal dialogue should therefore be deepened in the future by treating some of the subjects dealt with in the Informal Workshops in greater detail. (For an assessment of each of the Workshops, see C/NM(90)8, C/NM(90)15. C/NM(90)17 and C/NM(90)18.) At the same time, there was a feeling that the momentum generated by the Informal Workshops should not be lost. Confirming these views, consultations with the PAES on the work programme revealed broad I support for the proposed general direction for the dialogue albeit, on the I whole, with a clear preference for "deepening" topics. "Broadening" topics

I are described in the next section.

DAE Attendance of the Expert Meeting on Banking Structure and Regulation

1 1. .

The purpose of the expert meeting (to be held on 10th and 11th September 1990), organised by the Committee on Financial Markets (CMF), is to review trends in banking i.e. in the markets for financial services offered by banks and in banking regulation since the Committee's Expert Group on Banking completed its work in 1986. which resulted in the publication of a General Report on Trends in Banking in OECD Countries and six monographs on topical banking issues. The discussion will be based on two analytical papers to be prepared by the Secretariat: "Recent Trends in Banking" and "Recent Trends in the Regulation of Banking". These papers could make some reference to the situation in DAES, where relevant, but essentially would be focused on developments in the OECD area.

12.

In the first Secretariat paper on "Recent Trends in Banking" the following topics will receive special attention:

13.

further developments in the process of diversification versus specialisation in financial services including the trend towards the formation of financial conglomerates;

the impact of financial "deregulation" on competition and efficiency;

further developments in the internationalisation process in the banking area.

The second Secretariat paper will deal with "Recent Trends in Banking Regulation" and address in particular the following topics:

further developments in the "deregulation" of prices for financial services:

CONFIDENTIAL