HONG KONG MONETARY AUTHORITY Annual Report 1996
HONG KONG MONETARY AUTHORITY
Participation in these forums will enable the HKMA to keep close track of developments in international monetary systems, which may impact on international financial markets that may affect Hong Kong. With the growing integration of international financial markets, such information is vital for the maintenance of exchange rate stability.
BANK FOR INTERNATIONAL SETTLEMENTS (BIS)
In November 1996, the HKMA formally became a member of the BIS, the leading international central banking institution that was established in 1930 to promote financial and monetary stability. Along with eight other central banks or monetary authorities that were included in the new membership, the international financial status of Hong Kong has been duly recognised. Moreover, the fact that both the HKMA and the PBoC were admitted to the organisation in their own right serves as an important recognition of the "one country, two systems" concept.
NEW ARRANGEMENTS TO BORROW (NAB)
In 1996, the HKMA secured agreement from all parties for Hong Kong to participate in the NAB, a standby credit facility extended to the IMF to forestall or cope with an impairment of the international monetary system. The formalities for participation were completed in early 1997. Hong Kong's participation in the NAB underscores the territory's status as an international financial centre and allows the HKMA to tap into the global early warning system for potential financial crises.
EXECUTIVES' MEETING OF EAST ASIA AND PACIFIC CENTRAL BANKS (EMEAP)
The HKMA actively participated in the EMEAP, an informal regional central banking forum to discuss issues of mutual interest. Two working groups and one study group were