Credit Information Services Ltd

Ladies and gentlemen

I am very pleased to be here this evening to celebrate the new shareholding structure of CIS. This new structure brings in Transunion as the majority shareholder and includes the participation in the ownership of a number of locally based institutions. This looks like a good combination. Transunion is one of the largest credit bureaux in the United States and will bring with it the experience of operating in a highly developed market for exchange of credit information. Its expertise in systems will fit in well with the local knowledge of the minority shareholders.

The HKMA has long advocated the development of a fully-fledged credit reference agency in Hong Kong, with the full participation of the major banks. This new structure for CIS takes us a major step in that direction. We believe that the development will benefit all lending institutions - large and small - in terms of better informed and more accurate assessment of their customers' credit standing. The rising charge-offs on credit card receivables emphasises the need for the input into sound credit decisions which a fully effective credit reference agency can provide. Such an agency is an important element in the financial infrastructure of Hong Kong and will further enhance its position as an international financial centre.

Of course, we should not forget that personal data held by credit reference agencies must be properly safeguarded. I am sure therefore that CIS will continue to work closely with the Privacy Commissioner to ensure that the need to protect personal data is balanced against the ability to share information in an effective manner.

In conclusion, therefore, the HKMA welcomes the new shareholding structure for CIS. We believe that this will open up a new chapter in the history of CIS and enable it to play an even greater part in the future development of the financial industry in Hong Kong.

Hong Kong Monetary Authority

27 January 1999