Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

HKMA Urges ADB to Develop the Bond Markets in Asia

The Asian Development Bank (ADB) should devote more efforts to developing the Asian bond markets as part of the long-term solution to the Asian financial turmoil, said Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority (HKMA).

Mr Yam was speaking for Hong Kong at the 31st Annual Meeting of ADB held in Geneva, Switzerland, today (30 April 1998).

"The currency turmoil is telling us how and why our wealth could be cut by half because of weaknesses in the financial intermediation process in Asia which made us vulnerable to volatile speculative capital flows," said Mr Yam.

He added that net capital inflow to emerging markets, which amounted to less than US$50 billion a year at the beginning of the decade grew to US$235 billion by 1996, according to estimates by the International Monetary Fund. Asia alone has received roughly half of this capital inflow.

"However, these funds were withdrawn when investor confidence was shaken by the inadequacies in regulation and supervision of financial institutions, lack of risk management and poor corporate governance. What initially started as a liquidity crunch turned very quickly into a massive solvency crisis in the affected economies," said Mr Yam.

Mr Yam pointed out that even though the IMF mobilised financing totalling US$110 billion for three programme countries in Asia, namely Indonesia, South Korea and Thailand, with two-thirds coming from the multilateral financial institutions, and one-third from bilateral financing, it was still insufficient relative to the market needs.

"Given the sheer size of the public and private sector foreign currency debts of the affected economies, the role of the international lender of last resort cannot be fulfilled by the IMF or any single central bank without the participation of the private sector," said Mr Yam.

He urged the ADB and other Multilateral Development Banks to assist in the recycling of international liquidity. They can complement the IMF resources by using their substantial and already established market mechanism to raise funds from the market and recycle them. "Being the only development bank in Asia which is majority-owned by the Asian and Pacific economies and was established with the objective of promoting and developing the economies and markets in the region, the Bank should focus its efforts on developing the Asian bond markets and should be more active in issuing bonds within the region," said Mr Yam.

He said that if the ADB were to issue bonds to fund Asian financial sector development to help alleviate the financial intermediation problem in Asia, Hong Kong would be one of the first to invest in such bonds.

Mr. Yam also noted ADB's contribution to the region's financial development and monetary stability. The Bank's total loans to financial sector in 1997, excluding the loans to South Korea and Thailand, amounted to US$363 million, representing a 70% increase over 1996.

Mr. Yam was chosen Central Bank Governor of the Year in Asia by Euromoney (May 1998 Issue), the third time he has won an award by this magazine. Euromoney awarded Mr. Yam Central Banker of the Year in Asia in 1996 and Central Banker of the Year in 1997. The latest award recognized Mr. Yam's role in piloting Hong Kong through the regional currency turmoil and his role in international monetary cooperation. The award also noted his contribution to the development of the debt market and financial infrastructure in Hong Kong, and the establishment of the Hong Kong Mortgage Corporation.

 

Hong Kong Monetary Authority
30 April 1998



Last revision date: 3 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery