Hong Kong Monetary Authority
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| Hong Kong Monetary Authority | |
| Headquarters | IFC Centre, HKSAR |
|---|---|
| Chairman | Joseph Yam |
| Central Bank of | Hong Kong |
| Currency | HK dollar |
| ISO 4217 Code | HKD |
| Base borrowing rate | 6.75% |
| Base deposit rate | 6.75% |
| Website | [http://www.info.gov.hk/hkma |
The Hong Kong Monetary Authority (Traditional Chinese: 香港金融管理局) or HKMA (金管局) is Hong Kong's central banking institution. It is a government authority founded on April 1, 1993 by the Special Administrative Region government via the consolidation of "Office of the Exchange Fund" and the "Office of the Commissioner of Banking". The organization reports directly to the Financial Secretary.[1]
Contents |
[edit] Responsibilities
The overall responsibility of the organization is to ensure monetary and banking stability. The specific roles include the following:
- Maintaining stability of Hong Kong's currency, official reserves and Exchange Fund.
- Keep Hong Kong's banking system safe.
- Allow smooth and free flow of money into the financial infrastructure.
- Promote the safety of the banking system.
[edit] Policies
The official reserves of Hong Kong and the banking system are important underpinnings of the Linked Exchange Rate System. It is also responsible for promoting the efficiency, integrity and development of the financial system, with emphasis on the payment and settlement arrangements.
[edit] Infrastructure
The Central Money markets Unit (CMU), established in the 1990, provide computerized clearing and settlement facilities for Exchange Fund Bills and Notes. It extended the service to other Hong Kong dollar debt securities in late 1993. A seamless interface allow the co-existence of the CMU and the newly launched Real Time Gross Settlement (RTGS) inter-bank payment system. This enables end-of-day "Delivery Versus Payment" services as opposed to Non-DVP.
[edit] Guide to Authorization
The guide explains the authorization requirements and the grounds for revocation contained in the Banking Ordinance and the procedures for applications for authorization. It also offers guidance to institutions who are seeking authorization under the BO about the scheme of supervision contained in the BO and the policies and approach of the HKMA in achieving it. It is also relevant to existing authorized institutions as the authorization criteria continue to apply to them after authorization.
[edit] Supervisory Policy Manual
The manual will be rolled out in stages, as batches of modules are being finalized. It essentially ensures best practices in handling "authorized institutions" (AIs).
[edit] Monetary Stability
[edit] Currency Board System
It includes the Linked Exchange Rate System and noticeable features such as the Aggregate Balance, Certificates of Indebtedness and coins issued and the Outstanding Exchange Fund Bills and Notes.
The Interest Rate Adjustment Mechanism is an automatic system that maintains the stability of the Hong Kong dollar exchange rate. Lately the HKMA has been disclosing the forecast change in the Aggregate Balance attributes to increase the transparency of the Currency Board operation.
[edit] Exchange Fund
The fund was established and managed originally by the "Currency Ordinance" in 1935. It is now named the "Exchange Fund Ordinance".
[edit] Banking Stability
Banking Stability mainly depends on the "Banking System and Supervision". A "Three-Tier System" was implemented in the 1980s. Institutions are also managed different depending one whether they are categorized as Licensed Banks, Restricted License Bank or Deposit-taking Institutions. Overseas banks may also establish local representative offices in Hong Kong.
[edit] HKMA in the community
The HKMA takes the duty to explain its policies and work to the community and makes effort to raise the concerns of the general public through a variety of channels:
- close contacts with mass media
- a special and regular publication which includes:
- Annual Report - which explains the HKMA's work and achievements and objectives for the coming years.
- Quarterly Bulletin - reports on and analyzes the policies of the HKMA's main activities which aims in measuring its central banking functions and explains its philosophy and policies, especially in new policies taken by HKMA.
- Monthly Statistical Bulletin - provides monetary and financial statistic.
- a bilingual website
- education programs for students
- meetings with legislators
- a public enquiry service
- an information centre
[edit] The Chief Executive Committee
Joseph Yam (任志剛) has been the Chief Executive since the founding of HKMA.
[edit] See also
- Monetary Authority of Macao (AMCM)
[edit] External links
- Hong Kong Monetary Authority (HKMA)
- Exchange Fund Investment Limited (EFIL)
- Hong Kong Mortgage Corporation Limited (HKMC)
- Hong Kong Note Printing Ltd (HKNPL)
- Hong Kong Institute for Monetary Research (HKIMR)
- Hong Kong Interbank Clearing Limited (HKICL)
[edit] Resource(s)
- ^ HK gov. "www.info.gov.hk/hkma/ar2005/english/summary/pdf/hkma.pdf." Info HK Gov. Retrieved in 2006.
