The Hong Kong Monetary Authority (HKMA) hosted the inaugural Conference “Cultivating Culture in the Banking Industry in Hong Kong” for Independent Non-Executive Directors (“the Conference”) today (Thursday) in Hong Kong.
The Conference was the latest effort of the HKMA’s programme to equip and empower the Independent Non-Executive Directors (INEDs) in performing a more effective role on the boards of banks in Hong Kong. It was very well received by over a hundred INEDs from 34 locally-incorporated banks. It provided an opportunity for a constructive exchange of views among INEDs and with the HKMA on issues of mutual interest, not least the HKMA’s increasing focus on bank culture and corporate governance.
In his keynote speech, Mr Andrew Bailey, Chief Executive of Financial Conduct Authority in the United Kingdom, described the changes made in the UK to ensure that the culture of firms, and associated themes such as governance and remuneration were given much more attention. It was important to establish that incentives for good culture were well understood in firms and by regulators. This should ensure better outcomes. He emphasized that boards were at the heart of this effort.
In his closing remarks, Mr Norman Chan, Chief Executive of the HKMA, defined sound banking as banking practices that are prudent and profitable, responsible and fair to customers, and as a result, sustainable in the long run. To achieve sound banking, Mr Chan referred to the “Trilogy of Sound Banking”, consisting of robust regulation and supervision, good corporate culture, and appropriate incentive system.
Other speakers attending the Conference included:
Guest speaker
Mr Moses Cheng, Founder Chairman of the Hong Kong Institute of Directors, who gave his views on empowering INEDs to foster strong governance in the banking industry.
Panel speakers (in alphabetical order of their names)
Mr Danny Liu, INED of Citibank (Hong Kong) Limited; Ms Eva Cheng, INED of Bank of China (Hong Kong) Limited; Mr Paul Tsang, INED of China CITIC Bank International Limited; and Dr Rosanna Wong, INED of HSBC, discussed in a panel about identifying key accelerators and disruptors in building an ethic conscious culture in the banking industry.
Ms Ann Kung, Deputy Chief Executive of Bank of China (Hong Kong) Limited; Mr Charles Ng, Associate Director-General of Investment Promotion of InvestHK; Ms Shirley Yuen, Chief Executive Officer of the Hong Kong General Chamber of Commerce discussed the importance of financial inclusion in another panel.
Hong Kong Monetary Authority
16 March 2017
Mr Norman Chan, Chief Executive of the HKMA, gives opening remarks at the inaugural INED Conference, emphasising the critical role that INEDs play in fostering an ethical bank culture.
Mr Andrew Bailey, Chief Executive of Financial Conduct Authority, addresses the delegates at the inaugural INED Conference.
Mr Andrew Bailey, Chief Executive of Financial Conduct Authority (left), discusses with Mr Arthur Yuen, Deputy Chief Executive of the HKMA, ways to building good bank culture in Hong Kong.
Members of a panel on ethic conscious bank culture include (from left to second right): Dr Rosanna Wong, INED of HSBC, Mr Paul Tsang, INED of China CITIC Bank International Limited, Ms Eva Cheng, INED of Bank of China (Hong Kong) Limited, and Mr Danny Liu, INED of Citibank (Hong Kong) Limited.
Members of a panel on financial inclusion include (from left to second right): Ms Sarah Kwok, Head of Banking Conduct of the HKMA, Ms Ann Kung, Deputy Chief Executive of Bank of China (Hong Kong) Limited, Mr Charles Ng, Associate Director-General of Investment Promotion of InvestHK, and Ms Shirley Yuen, Chief Executive Officer of the Hong Kong General Chamber of Commerce.
Mr Moses Cheng, Founder Chairman of the Hong Kong Institute of Directors, shares his views on the empowerment of INEDs at the inaugural INED Conference.
Notes to editors
Recent efforts of the HKMA on INED empowerment and promoting sound bank culture:
- Inaugural conference exclusively held for INEDs on bank culture and the roles of INEDs (March 2017)
- Guidance on bank culture reform (March 2017)
- Guidance on empowerment of INEDs and their role in board governance (December 2016)
- Launch of a structured development programme for INEDs, covering thematic seminars and experience sharing conferences (September 2016)
- High-level seminar for INEDs of Hong Kong banks in Xi’an (June 2016)
- High-level seminar for INEDs of Hong Kong banks in Beijing (October 2015)
