Hong Kong Monetary Authority
Headquarters | International Finance Centre, Central, Hong Kong |
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Established | 1 April 1993 |
Chief Executive | Eddie Yue |
Central bank of | Hong Kong |
Currency | Hong Kong dollar HKD (ISO 4217) |
Bank rate | 2.75% (as of 28 July 2022[update])[1] |
Interest on reserves | None |
Website | www |
Hong Kong Monetary Authority | ||||||||||||||||||||||
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Chinese | 香港金融管理局 | |||||||||||||||||||||
Cantonese Yale | Hēunggóng gāmyùng gúnléihgúk | |||||||||||||||||||||
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Alternative Chinese name | ||||||||||||||||||||||
Chinese | 金管局 | |||||||||||||||||||||
Cantonese Yale | Gām gún gúk | |||||||||||||||||||||
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The Hong Kong Monetary Authority (HKMA) is Hong Kong's
Responsibilities
The exchange fund was established and managed originally by the Currency Ordinance in 1935, now named the Exchange Fund Ordinance. Under the Ordinance, the HKMA's primary objective is to ensure the stability of the Hong Kong currency, and the banking system. It is also responsible for promoting the efficiency, integrity and development of the financial system.[3]
The HKMA issues
Policies
The
Tools
Since 1995, the HKMA has entered into a stability pact with central banks in Malaysia, Thailand, Indonesia and Australia to engage in repurchase agreements, which provide liquidity on a two-way basis.[4]
Infrastructure
Economy of Hong Kong |
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Identity |
Resources |
Companies |
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Other Hong Kong topics |
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Hong Kong Portal |
The Central Moneymarkets Unit (CMU), established in the 1990, provides computerised 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 (DVP) services as opposed to Non-DVP.
In 2018, HKMA developed the infrastructure for the Faster Payment System and launched it in September of that year.
Banking licenses
Banking stability mainly depends on the banking system and supervision. A three-tier banking system (銀行三級發牌制度) was implemented in the 1980s. Institutions are also managed differently depending on whether they are categorised as licensed banks, restricted license banks or deposit-taking institutions. Overseas banks may also establish local representative offices in Hong Kong.
In 2019, the HKMA began issuing the first batch of virtual bank licenses in Hong Kong; these banks were not required to have physical branches in the city.
Monetary stability
Currency board system
It is included the
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.
In 1995, Nobel Prize–winning economist
As with any monetary system not based on a
Exchange fund
For more information, please look at Exchange Fund (Hong Kong) page.
Under colonial rule, the HKMA did not place funds with local banks not rated by
During the
In hindsight, one speculator said, "Government intervention raised public confidence in the market when it was near total collapse. It prevented a bigger crisis and saved the market."[10]
Most stocks acquired during that operation were successively disposed with the creation of a tracker fund, the TraHK. That reduced the portfolio of HK equities to 5.3% of the reserves in 2003. However, the percentage crept back and had risen above 10% by the year 2006.
In August 1998, as part of its wider remit to protect the currency, the authority lent the Thai government US$1 billion from the fund as part of a $17 billion bailout organised by the International Monetary Fund (IMF).[3]
Headquarters
The HKMA's is headquartered in the International Finance Centre. It purchased fourteen floors in Tower 2.[11] The 55th, 56th and the 77th to 88th floors were bought for US$480 million in 2001.[12] An exhibition area, currently containing an exhibit of Hong Kong's monetary history, and a library of the Hong Kong Monetary Authority Information Centre occupy the 55th floor.[13] The 88th floor of the tower contains the office of the chief executive of the HKMA, and is served by an individual lift.
Chief executive
The Chief Executive is appointed for a five-year term by the Financial Secretary, and is continuously renewable with no term limit.
List of chief executives
No. | Name (birth–death) |
Term of office | Higher education | Previous role | Financial Secretaries Served | ||
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Start of term | End of term | Duration | |||||
1 | Joseph Yam Chi-kwong, GBM, GBS, JP 任志剛 (1948–) |
1 April 1993 | 30 September 2009 | 16 years and 183 days | University of Hong Kong (BSocSc) | Director of the Office of the Exchange Fund | Sir Hamish Macleod Donald Tsang Antony Leung Henry Tang John Tsang |
2 | Norman Chan Tak-lam, GBS, JP 陳德霖 (1954–) |
1 October 2009 | 30 September 2019 | 10 years and 0 days | Chinese University of Hong Kong (B.S.) | Director of the Office of the Hong Kong Chief Executive | John Tsang Paul Chan |
3 | Eddie Yue Wai-man, JP 余偉文 (1965–) |
1 October 2019 | Incumbent | 4 years and 208 days | Chinese University of Hong Kong (B.B.A.) University of London (LL.B, M.S.) Harvard University (M.B.A.) |
Deputy Chief Executive of the Hong Kong Monetary Authority | Paul Chan |
Deputy chief executives
The chief executive is supported by a number of deputy chief executives, shown below in order of appointment.
- David Carse (1993–2003)
- Andrew Sheng (1993–1998)
- Norman Chan (1996–2005)
- Anthony Latter (1999–2003)
- William Ryback (2003–2007)
- Peter Pang (2004–2016)
- Choi Yiu-kwan (2005–2009)
- Eddie Yue (2007–2019)
- Arthur Yuen (since January 2010)
- Howard Lee (since February 2016)
- Edmond Lau (2021–2022)
- Darryl Chan (since November 2022)
Events
The Hong Kong Monetary Authority hosted the meeting of the
The HKMA is also host to the 2022 Global Financial Leaders' Investment Summit.
See also
- Economy of Hong Kong
- Banknotes of the Hong Kong dollar
- Hong Kong Note Printing Limited
- List of financial regulatory authorities by jurisdiction
- List of central banks
References
- ^ "Base Rate". Hong Kong Monetary Authority. Retrieved 29 July 2022.
- ^ "Info" (PDF). info.gov.hk.
- ^ a b Noel Fung, Government power over Exchange Fund's stability role under review. Archived 24 November 2007 at the Wayback Machine. The Standard. 18 November 1997.
- ^ Sean Kennedy, Yam defends central bankers' pact. Archived 24 November 2007 at the Wayback Machine. The Standard. 22 November 1995.
- ^ Chan Po-chung, Dollar demise remark angers HKMA Archived 24 November 2007 at the Wayback Machine, The Standard, 20 February 1995
- ^ Tony Latter, Why blame the peg?, HKMA Quarterly Bulletin, May 2002
- ^ Geoffrey Crothall, Banker's fury at 'colonial system' Archived 24 November 2007 at the Wayback Machine, The Standard, 14 September 1995
- ^ Bayani Cruz, We will hold on to blue-chip shares: Tsang Archived 16 October 2007 at the Wayback Machine, The Standard, 29 August 1998
- ^ Michael Wong and Teresa Lee, Chan defends 'special action' to prevent currency chaos Archived 24 November 2007 at the Wayback Machine, The Standard, 16 August 1998
- ^ Amy Nip, Soros manager regrets attack on HK dollar Archived 24 November 2007 at the Wayback Machine, The Standard, 5 July 2007
- ^ Lau, Eli (22 September 2003). "SHKP net profit tipped to drop 24.6pc". The Standard. Archived from the original on 24 November 2007. Retrieved 27 March 2007.
- ^ Tong, Sebastian (7 April 2003). "HKMC 'to pay $90m' for lease at Two IFC". The Standard.
- ^ "HKMA Information Centre". Hong Kong Monetary Authority. Retrieved 27 March 2007.
- ^ Sean Kennedy, Yam defends IMF cost Archived 24 November 2007 at the Wayback Machine, The Standard, 7 July 1995