Consultancy Study on the Future Development of the Banking Sector in Hong Kong

The Hong Kong Monetary Authority (HKMA) has appointed KPMG Peat Marwick and its subsidiary, Barents Group, LLC as consultants to carry out a study on the future development of the banking sector in Hong Kong.

The Study has two objectives. The first is to examine the strategic outlook for the banking sector in Hong Kong over the next five years. This will include an assessment of the strengths and weaknesses of the banking sector and the opportunities and threats with which it is faced, taking into account the impact of global and local trends and issues. Among the issues to be examined will be the costs and benefits of certain features of the current regulatory system and the potential impact of changes to these features. There is however no presumption that changes to the current regulatory system should, or will, be made.

The second objective of the Study is to consider the adequacy and effectiveness of the HKMA's current approach to banking supervision and to make recommendation for any changes that seem required in the light of the strategic outlook for the banking sector.

The Study will consist of two phases corresponding to the above objectives. The Study is now underway and is expected to be completed in about six months. The final report is expected to be submitted to the HKMA by the end of September 1998.

Hong Kong Monetary Authority
23 March 1998