HONG KONG MONETARY AUTHORITY Annual Report 1996
HONG KONG MONETARY AUTHORITY
established by members of the EMEAP in 1996. The aim is to further explore and define means of co-operation and exchange amongst regional central banks and monetary authorities in specific areas like payment systems, financial market development, reserves management and banking supervision. The HKMA has assumed chairmanship of the Study Group on Banking Supervision.
BILATERAL REPURCHASE AGREEMENTS
Building on the consensus established in the aftermath of the Mexican financial crisis in early 1995, bilateral repurchase agreements between the HKMA and other regional central banks using US Treasuries were established. By the end of 1996, the HKMA had entered into eight repurchase agreements with central banks or monetary authorities from Australia, China, Indonesia, Japan, Malaysia, the Philippines, Singapore and Thailand. These agreements provide additional liquidity for market stability purposes with minimal credit risks.
BILATERAL MEETINGS
To facilitate in-depth discussions on matters of mutual concern, the HKMA has entered into an annual cycle of bilateral meetings with regional central banks. The first bilateral meeting was with the Reserve Bank of Australia in September 1996, followed by meetings with Bank of Thailand, Bank Indonesia, Monetary Authority of Singapore and Bank Negara Malaysia.
CENTRAL BANKING SEMINARS
The HKMA took the initiative to organise seminars in association with the IMF and the ADB to promote understanding of key central banking and global financial issues. Three seminars on financial derivatives, market intervention issues, and management of sovereign asset and liability as well as the Inaugural HKMA Distinguished Lecture were organised in Hong Kong in 1996. At the HKMA Distinguished Lecture, Mr. William McDonough, President and Chief Executive Officer of the Federal Reserve Bank of New York, was the Distinguished Lecturer and Mr. Chen Yuan, Deputy Governor of the People's Bank of China was the Discussant. These functions were warmly received by regional central banks and the financial community.