17 February 2004

Dear Sir / Madam,

Supervisory Policy Manual ("SPM")
TM-E-1: Supervision of E-banking

I am pleased to inform you that, following consultation with the industry, the Monetary Authority is issuing the above module of the SPM today.

This module, which sets out the HKMA's approach to the supervision of AIs' electronic banking (e-banking) services and provides AIs with guidance on general principles for risk management of e-banking, is being issued as a guidance note. On-line access to the above module is available under the icon of "Supervisory Policy Manual" in the HKMA's public (http://www.info.gov.hk/hkma/eng/bank/spma/index.htm) and private (http://www.hkfin.net) web-sites.

Should you have any questions relating to this module, please feel free to contact Mr Shu-Pui Li at 2878 1826 or Mr Raymond Suen at 2878 1817.

Yours faithfully,

Raymond Li
Executive Director (Banking Development)