Issuance of the Code of Banking Practice

The Code of Banking Practice ("the Code") is issued jointly by the Hong Kong Association of Banks (HKAB) and the Deposit-taking Companies Association (DTCA) today (July 11) after an extensive consultation exercise.

Both Mr Chris Langley, chairman of HKAB and Mr Alex Au, chairman of DTCA expressed full support to the Code and said their members would take active steps to comply with it as quickly as possible.

Mr Raymond Li, Executive Director (Banking Policy) of the Hong Kong Monetary Authority (HKMA) welcomed the issue of the Code.

"The Code will further enhance the transparency and quality of banking services in Hong Kong," said Mr Li. "We fully endorse the provisions of the Code and we will monitor compliance as part of our regular supervision," he added.

The Code has been developed by a Working Group comprising representatives of the industry associations and the HKMA. The Code comprises five chapters:

• Relationship between banks and customers
• Opening and operation of accounts and loans
• Card services
• Payment services
• Debt collection.

A draft of the Code was issued to the industry associations and other interested parties for consultation in January this year. Extensive comments were received during the consultation period. This has greatly assisted in improving the draft Code. As in other financial centres, the Code will be subject to review and revision from time to time in the light of operational experience and market developments.

The Code will be available to the public through designated branches of the HongkongBank:

• 3rd Floor, 1 Queen's Road Central, Hong Kong;
• Mongkok Office - 673 Nathan Road, Kowloon; and
• Shatin Centre - Shop 30D, Level 3, Shatin Centre Shopping Arcade, N.T.

The Code is also accessible through the HKMA internet Website
(http://www.info.gov.hk/hkma).

Hong Kong Association of Banks
Deposit-taking Companies Association
Hong Kong Monetary Authority
11 July 1997