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Following is the speech (English only) by the Acting Chief Executive, Mr Henry Tang, at the Hong Kong Institute of Bankers 45th Anniversary Dinner this (July 23) evening:
Peter, Distinguished Guests, Ladies and Gentlemen,
I am delighted to join you for your 45th Anniversary Gala Dinner. First and foremost, let me congratulate the Institute on its contributions to the banking sector over the last 45 years.
It is rare to have so many leaders of our banking community in the same place at the same time. Let me take this opportunity to say a collective "thank you" for your dedication to Hong Kong's vibrant banking sector. Many of you have contributed your time and expertise to shape the strategies and the direction of the Institute over the years, and we celebrate the fruits of your efforts today.
Also, a very warm welcome to Hong Kong to delegates attending the International Banking Summer School. We are honoured to be hosting the Summer School for the first time this year. It is also the first time this prestigious event is held in Asia, although I'm sure it will not be the last.
With over 100 corporate members representing some 70,000 professionals, the Institute plays an integral role in raising the standards of education in the banking sector and improving the quality of our banking system.
In recent decades, Hong Kong has transformed itself into a leading international financial centre. Of course, recent events have produced some uncertainties and further anxiety in the global economy. Financial turmoil brought about by the sub-prime problem in the US, concerns that the US might be heading for a recession, if they are not in it already, inflationary pressure due to high energy and food prices, just to name a few dark clouds over the horizons. We are on full alert. But thanks to China's robust economy and our solid market regulatory framework, Hong Kong's banking system remains healthy and the financial services sector continues to be a strong pillar of our community.
I understand that bankers need figures to be convinced. Information collected by the Hong Kong Monetary Authority indicates that local banks' exposure to Fannie Mae and Freddie Mac, which mainly takes the form of debt instruments, is not significant and accounts for just slightly more than 0.1% of the total assets of all local banks.
But of course, we are not satisfied with just being healthy. We want to grow taller and stronger. Being an international centre as well as China's global financial centre, one of our most important roles is to dovetail the two financial systems in Hong Kong and the mainland. That's why we will continue to advance co-operation with the Mainland to develop a complementary and interactive relationship between our respective financial systems to increase the depth and breadth of our market.
Business using Renminbi was launched in Hong Kong in 2004. It continues to grow and at end-January this year, Renminbi deposits totalled 40.4 billion yuan, which is equivalent to almost 6 billion US dollars.
Our deepening integration with the mainland of China obviously means our economic prospects are closely linked with those of our nation - and China's economy grew 11.9% last year. This is on the back of nearly three decades of close to double-digit growth. Although market is expecting the growth to slow down a bit this year, given a much enlarged base, it is still a very remarkable growth.
This is surely an attractive indicator of Hong Kong's strengths that should encourage overseas bankers to place more operations in the SAR.
Bringing the International Banking Summer School to Hong Kong reflects our aspiration to become an international financial training centre. We aim to build on our existing deep pool of local and international expertise, to nurture banking talent and encourage more structured career development so as to ensure Hong Kong's sustainability as a global financial centre and our nation's most important city for the banking industry.
Ladies and Gentlemen, since its establishment in 1963, the Hong Kong Institute of Bankers has consistently moved with the times to meet the growing and ever changing needs of the industry.
I am confident that the Institute - with the untiring support of prominent individuals and institutions - will continue to play a pivotal role in raising the quality and professionalism of our banking sector.
Congratulations to the Institute on its accomplishments over the past 45 years and I wish you all continued success in the years to come.
Thank you.
Ends/Wednesday, July 23, 2008
Issued at HKT 21:16
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