HONG KONG MONETARY AUTHORITY Annual Report 1996

CALENDAR OF EVENTS 1996

JANUARY
The size of the Hong Kong dollar debt market stood at $197 billion at the end of 1995, according to the first comprehensive survey on local debt market activities conducted by the HKMA with the co-operation of the Hong Kong Capital Markets Association. 19
Agreement was reached between De La Rue Group and the Government to purchase De La Rue's banknote printing plant in Hong Kong through the Exchange Fund. The consideration for the sale was $255 million. The new operation was later renamed as "Hong Kong Note Printing Limited (HKNPL )". Mr Joseph Yam, Chief Executive of the HKMA, became Chairman of the HKNPL while Mr Peter So Lai-yin was appointed the General Manager. 22
FEBRUARY
The Liquidity Adjustment Facility's bid and offer rates were lowered to 4% and 6% from 4.25% and 6.25% respectively. The following day, the Hong Kong Association of Banks announced a cut of 25 basis points in interest rates on retail deposits with maturities of less than seven days. 1
The People's Bank of China and the HKMA signed a repurchase agreement of US dollar government securities to provide liquidity on a bilateral basis. This was the sixth bilateral repurchase agreement signed with central banks in the region. 9
The HKMA announced that it would act as an intervention agent on behalf of the Bank of Japan to enhance the stability of the Yen against the US dollar in the Hong Kong foreign exchange market. This was an example of practical co-operation between central banks in the region. 20
MARCH
A letter was sent to all locally incorporated banking institutions informing them of the finalised proposal of the Basle Committee on market risks and the HKMA's intention to start implementing the market risk framework by the end of 1996. 20
A guideline on risk management of derivatives and other traded instruments to all banking institutions was issued by the HKMA. The guideline provided more detailed guidance on specific, in particular the operational aspects of the process for managing risks of banking institution's derivatives activities. 27
APRIL
A consultation paper on the mortgage corporation proposal was issued by the HKMA. In the light of the outcome of the consultation exercise, the Government would decide on whether it should proceed with the setting up of a mortgage corporation. 15

 

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