***********************************************************
Following is the speech by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, in moving the resolution on the Banking (Capital) Rules in the Legislative Council today (November 29):(English only)
Madam President,
I move that the Resolution contained in the Agenda be passed.
The purpose of the Resolution is to amend the Banking (Capital) Rules. These rules, together with the Banking (Disclosure) Rules, seek to implement a revised capital adequacy and disclosure framework for authorised institutions in line with the international standards known as "Basel II". The Rules were laid on the table of the Legislative Council at the sitting of November 1, 2006. The proposed amendments in the Resolution, which are technical in nature, include the introduction or revision of the definitions of certain expressions to improve the clarity of the provisions in the Banking (Capital) Rules. I will be moving another resolution of similar nature shortly to amend the Banking (Disclosure) Rules.
The passing of the resolutions today will allow Hong Kong to introduce the revised capital adequacy and disclosure framework from January 1, 2007, in line with the timetable set by the Basel Committee on Banking Supervision. Members may wish to note that Hong Kong is amongst the first batch of economies that implement the Basel II standards. I commend all concerned parties for their efforts in putting in place the two sets of comprehensive rules. Particularly, I would like to take this opportunity to thank the Legal Service Division of the Legislative Council Secretariat for completing the scrutiny of the Rules in the specified vetting period. Its valuable comments are useful for the Administration to refine the Rules.
I move that the Resolution be passed. Thank you, Madam President.
Ends/Wednesday, November 29, 2006
Issued at HKT 14:38
NNNN
