Improving the Financial Regulatory System
27. As an international
financial centre, one of our major tasks is to provide
an effective, transparent and fair regulatory regime on
a par with international standards.
Last year, this Council enacted the Deposit
Protection Scheme Ordinance, which will improve the
protection of deposits in
. The scheme
is expected to start in 2006.
We will also introduce a bill into this Council
next month to implement the new capital adequacy
standards for banks issued by the Basel Committee on
Banking Supervision, commonly known as Basel II.
These new standards will strengthen the
risk-management capability and stability of our banking
sector and stand it in good stead for the further
liberalisation of the Mainland's financial markets in