The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) hosted the inaugural Conference "Cultivating Culture in the Banking Industry in Hong Kong" for Independent Non-Executive Directors (the Conference) today (March 16) in Hong Kong.
      
     The Conference was the latest effort of the HKMA's programme to equip and empower the Independent Non-Executive Directors (INEDs) in performing a more effective role on the boards of banks in Hong Kong. It was very well received by over a hundred INEDs from 34 locally-incorporated banks. It provided an opportunity for a constructive exchange of views among INEDs and with the HKMA on issues of mutual interest, not least the HKMA's increasing focus on bank culture and corporate governance.
      
     In his keynote speech, the Chief Executive of Financial Conduct Authority in the United Kingdom, Mr Andrew Bailey, described the changes made in the UK to ensure that the culture of firms, and associated themes such as governance and remuneration were given much more attention. It was important to establish that incentives for good culture were well understood in firms and by regulators. This should ensure better outcomes. He emphasized that boards were at the heart of this effort.
      
     In his closing remarks, the Chief Executive of the HKMA, Mr Norman Chan, defined sound banking as banking practices that are prudent and profitable, responsible and fair to customers, and as a result, sustainable in the long run. To achieve sound banking, Mr Chan referred to the "Trilogy of Sound Banking", consisting of robust regulation and supervision, good corporate culture, and appropriate incentive system.
      
Other speakers attending the Conference included:

Guest speaker
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     The Founder Chairman of the Hong Kong Institute of Directors, Mr Moses Cheng, gave his views on empowering INEDs to foster strong governance in the banking industry.
      
Panel speakers (in alphabetical order of their names)
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     The INED of Citibank (Hong Kong) Limited, Mr Danny Liu; the INED of the Bank of China (Hong Kong) Limited, Ms Eva Cheng; the INED of the China CITIC Bank International Limited, Mr Paul Tsang; and the INED of HSBC, Dr Rosanna Wong, discussed in a panel about identifying key accelerators and disruptors in building an ethic conscious culture in the banking industry.
      
     The Deputy Chief Executive of Bank of China (Hong Kong) Limited, Mrs Ann Kung; the Associate Director-General of Investment Promotion of InvestHK, Mr Charles Ng; and the Chief Executive Officer of the Hong Kong General Chamber of Commerce, Ms Shirley Yuen, discussed the importance of financial inclusion in another panel.
      
Background Information
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Recent efforts of the HKMA on INED empowerment and promoting sound bank culture:

• Inaugural conference exclusively held for INEDs on bank culture and the roles of INEDs (March 2017)
• Guidance on bank culture reform (March 2017)
• Guidance on empowerment of INEDs and their role in board governance (December 2016)
• Launch of a structured development programme for INEDs, covering thematic seminars and experience sharing conferences (September 2016)
• High-level seminar for INEDs of Hong Kong banks in Xi'an (June 2016)
• High-level seminar for INEDs of Hong Kong banks in Beijing (October 2015)

Ends/Thursday, March 16, 2017
Issued at HKT 20:06

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