Hong Kong Banking Sector Consultancy Study: Comments Received from the Public Consultation

The Hong Kong Monetary Authority ("HKMA") today released a summary of the comments received during the three-month consultation period on the recommendations arising from the Hong Kong Banking Sector Consultancy Study (see attached).

The HKMA received a number of responses from the banking industry (including consolidated responses from the Hong Kong Association of Banks and The Deposit-Taking Companies Association) and six individual banks as well as other organisations including the Consumer Council, the Chinese Manufacturers' Association of Hong Kong, the Chinese General Chamber of Commerce and the Hong Kong Democratic Foundation.

"The majority of the respondents agree that the Study on the Hong Kong banking sector is timely and has highlighted the major issues that the industry faces and the market developments currently taking place. Although there are inevitably differences of opinion on specific aspects of the recommendations and on the pace of change, most respondents recognise that liberalisation of the financial markets is inevitable if Hong Kong is to maintain and consolidate its position as an international financial centre," said Mr. David Carse, Deputy Chief Executive of the HKMA.

"The HKMA will now proceed with detailed consideration of the various operational and legal issues that will need to be addressed in relation to the recommendations. It is expected that a coherent package of policy responses including a plan for implementation of the appropriate recommendations will be submitted to the Government for consideration within the next three months," Mr. Carse added.

A brief summary of the comments received from the public consultation is provided in table form at Annex A. A more detailed summary is at Annex B.

Hong Kong Monetary Authority
7 May 1999