The consultation we conducted indicated that there was quite widespead support for such an agency, although having said that it is fair to say that there was quite a diversity of opinion on various aspects. The working group will investigate this further and try to arrive at a recommended way forward. But we hope that something can be done in this area, as most seem to agree that such an agency would be beneficial. 10. So that brings me to the end of what I see as the three main initiatives, but let me also comment on a few other outstanding matters. First is the vexed question of the approval of managers. I must confess we have been a little taken aback by some of the reaction to this proposal, which seems to question our motives for seeking such a power. All I can say is that we have no ulterior motives. We simply feel that if individuals are to fill important positions in banks then steps should be taken to ensure that they are fit and proper for the position. Clearly it is the banks’ responsibility to select individuals and satisfy themselves as to their credentials, and you can be assured that we have absolutely no desire to second-guess these decisions. However, it is a fact that we may, on occasion, have access to information on an individual which the bank does not have. We would see ourselves, therefore, as acting as very much a second line of defence – and only in exceptional cases.
I have not said anything on the bankruptcy laws or tax issues, which were two issues I was asked to addresss, but I don’t think there is much I can say on these areas except that we appreciate the banks’ views and will reflect these to the appropriate authorities as appropriate. Certainly we are aware of the rising trend in personal bankruptcies and the possible impact of this on delinquencies, and this is something we are watching closely. We are also in dialogue with the Privacy Commissioner and other parties to try to get the scope of the credit data that can be released to credit agencies increased, which would perhaps help in this area. 14. I hope these comments have been of interest to you all. Let me end on a positive note. We are all part of a highly successful industry here in Hong Kong. As banking regulator, it is the HKMA’s objective to promote a safe and stable banking system. To achieve this we need the banking industry to be successful, profitable, competitive, innovative, and responsive to change, and this surely is your objective too. So let’s continue to work together on initiatives such as those I have discussed today so as to ensure the continued prosperity of our industry. 15. Thank you. BIS Review 3/2001  3