Our Ref: B1/21C
B1/15C

4 July 2001

The Chief Executive
All Locally Incorporated Authorized Institutions

Dear Sir/Madam,

Supervisory Policy Manual ("SPM") - Consultation

As agreed with the industry, the consultation process for those modules of the SPM that are largely re-castings of existing guidelines will take the form of posting them on the HKMA's private and public web-sites for a specified period for authorized institutions' comment before they are finalised.

This is to inform you that we have today posted in this way two modules, namely "CG-1 Corporate Governance of Locally Incorporated Authorized Institutions" and "CA-S-6 Instruments eligible for Inclusion in Core Capital". These are accessible on the HKMA's private (http://www.hkfin.net) and public web-sites under the icon of "Supervisory Policy Manual". If you have any comments on the modules, I would be grateful if these could be forwarded to the HKMA for the attention of Mr Angus Chan by 31 July 2001.

Should you have any questions relating to the modules, please feel free to contact Ms Rita Yeung on 2878-1388 or Mr Angus Chan on 2878-1287.

Yours faithfully,

Simon Topping
Executive Director (Banking Policy)

c.c. The Chairman, Hong Kong Association of Banks
The Chairman, The Deposit-taking Companies Association