Participation in Multilateral Agencies & International Forums
The HKMA participates actively in multilateral institutions and international forums to keep Hong Kong in the forefront of financial and monetary developments. Participation in these international forums enables the HKMA to keep close track of developments in international monetary systems and financial markets. With the growing integration of international financial markets, such information is vital for the maintenance of monetary and financial stability in Hong Kong.
Hong Kong has been a member of the ADB in its own right since 1969. Hong Kong subscribes to the ADB's General Capital Increases and contributes to the replenishments of the Asian Development Fund.
The HKMA is responsible for coordinating matters relating to Hong Kong's participation in the ADB. HKMA officials attend ADB's Annual Meetings and contribute to discussions on policy issues of common interest. Under the name "Hong Kong, China", the HKMA has continued to participate actively in ADB's activities after 1 July 1997.
Hong Kong is a member of APEC, and HKMA representatives attend the APEC meetings for finance and central bank officials. The HKMA was the co-ordinator of the APEC Collaborative Initiative on Development of Domestic Bond Market, which produced the Compendium of Sound Practices - Guidelines to Facilitate the Development of Domestic Bond Markets in APEC Member Economies in September 1999. The Initiative also launched the Bond Market Initiative Website, which contains research papers and articles as well as relevant bond market statistics of member economies for general access.
Hong Kong is not a member of the IMF or the World Bank. Hong Kong participates in the activities of the two organisations as part of the People's Republic of China Delegation.
As in the case of the ADB, the HKMA co-ordinates matters relating to Hong Kong's contact with the two organisations. These include attending their joint Annual Meetings, co-ordinating the IMF's Article IV Consultation on Hong Kong and participating in the exchange of information.
In January 1997, the HKMA joined the New Arrangements to Borrow (NAB), which is a standby credit facility provided to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional threat to the stability of the system. The HKMA's participation in the NAB underscores the status of Hong Kong as an international financial centre and provides Hong Kong with an additional channel of information on likely sources of financial instability.
The HKMA is committed to improving transparency and public access to Hong Kong's economic data by meeting standards expected of a leading international financial centre. Accordingly, Hong Kong subscribed to the IMF Special Data Dissemination Standard (SDDS) in October 1996. Hong Kong has complied with the enhanced SDDS on international reserves and foreign currency liquidity (Excel File, 1.69MB) since May 2000.
Hong Kong has participated in the IMF pilot project for the voluntary release of Article IV Staff Report and Selected Issues Paper. The first Article IV reports on Hong Kong was published in March 2000 and Hong Kong has continued to participate in the voluntary publication of the Article IV reports since then (for details of the latest Staff Report and Selected Issues Paper, please see relevant pages on the websites of the IMF and Financial Services and the Treasury Bureau of the Government of the Hong Kong Special Administrative Region).
In September 2000, the Sub-Office of the IMF's Resident Representative Office in China commenced operation in Hong Kong. The Sub-Office is responsible for gathering information on financial and monetary developments in Asia and analysing their impact on Hong Kong. In the same month, the International Finance Corporation, the private sector arm of the World Bank Group, established an office in Hong Kong as its regional headquarters for East Asia and the Pacific.
On 11 July 1998, the BIS opened its Representative Office for Asia and the Pacific in Hong Kong, underlying the strategic location of Hong Kong in the region and the attractions in telecommunication and financial infrastructure that Hong Kong can offer as an international financial centre. The Representative Office is the first overseas office of the BIS and it serves as a regional centre for the activities of the BIS in Asia. .
In November 1996, the HKMA formally became a member of the BIS. The fact that both the HKMA and the People's Bank of China (PBoC) have been admitted to the organisation in their own right serves as an important recognition of the "One Country, Two Systems" Principle.
Long before the HKMA formally became a member of the BIS, Hong Kong was already a strong supporter of BIS activities. Starting from 1979, the former Office of the Commissioner of Banking (OCB) began to contribute banking data to the BIS for compilation of international banking statistics. Hong Kong follows the standards of the Basel Committee on Banking Supervision, ensuring that the banking practices are in line with international standards.
The HKMA participates in the Annual Meetings of the BIS, its special meetings on global financial topics as well as committees and working groups.
In June 2009, Hong Kong joined the Basel Committee on Banking Supervision (BCBS), the leading international forum for co-operation on banking supervisory matters, as a member. Hong Kong has contributed to initiatives such as enhancing Basel II and formulating the Basel III rules endorsed by the G-20 leaders in November 2010.
The HKMA actively participates in EMEAP. The deputy governors of EMEAP meet twice annually, while the first meeting of Governors was held in Tokyo in July 1996 and has been held once a year subsequently. The HKMA hosted the 4th EMEAP Governors' Meeting in July 1999 and the 14th EMEAP Governors' Meeting in July 2009.
Three working groups have been established by EMEAP to strengthen co-operation among regional central banks and monetary authorities in specific areas such as payment systems, financial market development and banking supervision. The Monetary and Financial Stability Committee (MFSC) was established in 2007 to enhance the macro-monitoring and crisis management mechanisms of EMEAP. The HKMA has assumed chairmanship of the Working Group on Banking Supervision since mid-2006, and has participated in the other two working groups and MFSC as members.
Hong Kong is a member of the FSB, formerly the Financial Stability Forum (FSF). The FSF, which was established by the G7, first convened in April 1999 with a view to reducing vulnerability and safeguard the smooth functioning of financial markets through enhanced information exchange and co-operation in financial supervision and surveillance. Hong Kong's inclusion in the FSF, together with four other non-G7 economies (Australia, the Netherlands, Singapore and Switzerland) is a recognition of its status as a systemically important financial centre. The HKMA regularly attends meetings of the FSF to exchange views on potential vulnerabilities in the international financial system.
In April 2009, the FSF was re-established as the FSB with an expanded membership and broadened mandate. The structure of the FSB consists of a Chairperson, a Steering Committee, a Plenary, and a Secretariat. Under this structure, three Standing Committees on: (a) Assessment of Vulnerabilities;, (b) Supervisory and Regulatory Cooperation; and (c) Standards Implementation; were established to carry out the work of the FSB. Hong Kong is a member of the Plenary meeting and participates in all three Standing Committees.
The G20 Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important developed and developing economies to discuss key issues in the global economy.
The G20 plays an active role in global efforts to promote international financial market reform. The first G20 Summit on Financial Markets and the World Economy was held in November 2008, and an action plan for reforming and strengthening the international financial system was set out in the Summit Declaration. Further recommendations to strengthen the financial system were made at the London Summit in April 2009. Hong Kong participates in various G20 meetings as a member of the People's Republic of China's delegation and monitors closely the latest developments in implementing G20 recommendations both at home and abroad.
Other Central Banking Forums
HKMA representatives participate and give lecture in courses organised by SEACEN (South East Asian Central Banks) and SEANZA (South East Asia, New Zealand and Australia), and they attend other central banking forums, including the SEANZA Forum of Banking Supervisors.