MOU signed between HKMA and AMCM

The Hong Kong Monetary Authority (HKMA) and the Autoridade Monet-ria e Cambial de Macau (AMCM) announced today (Wednesday 26 February) the signing of a Memorandum of Understanding (MOU) which aims at strengthening supervisory co-operation between the two regulatory authorities.

The MOU sets out the framework for co-ordination of supervision of the branches, representative offices and subsidiaries of financial institutions from each other's territory. The authorities have agreed that there should be continuing close consultation and co-operation between them for supervisory matters that affect the other authority.

"I am confident that the signing of the MOU between the HKMA and the AMCM will enable the two regulatory authorities to work closely together to enhance cross-border supervision of financial institutions in Hong Kong and Macau," said Mr. Joseph Yam, Chief Executive of the HKMA.

"The existing ties of the Hong Kong and the Macau banking systems and the common interests in upholding financial stability and prudential principles justify the existing informal co-operation between the two supervisory authorities. This is now further reinforced and formalised in the MOU." said Mrs Maria Manuela Morgado, President of the AMCM.

Both the AMCM and the HKMA follow the recommendations of the Basle Concordat and the minimum standards for the supervision of international banking groups and their cross-border establishments, as set out in the paper issued by the Basle Committee on Banking Supervision in July 1992.

Hong Kong Monetary Authority
26 February 1997