The review, which will start this month, is expected to be completed in about five months. It will take into account developments including the globalisation of finance and banking business, the increasing integration of the financial systems of Hong Kong and Mainland China, the growing complexity of banking products, the increasing reliance of banks on information technology, the increasing need to combat financial crime, the changing nature of supervision, and the expectations of the community.

"Hong Kong’s banking system is robust, healthy and well regulated," declared Joseph Yam, Chief Executive of the HKMA. "But with the considerable changes and developments that have taken place in the banking industry in recent years and the recent completion of the reforms arising from the consultancy study on the Hong Kong banking sector in 1999, now is a good time to take another look at how we can further strengthen our work in regulating the banking system."

Carse will make recommendations on the focus and priorities of the HKMA’s banking supervisory functions over the next five years or so, and on policies to be developed for promoting the stability and effective working of the banking system.

"Mr Carse is a leading expert on banking supervision both in Hong Kong and around the world. His experience and expertise equip him well for this task," Yam explained.

Carse was the Director-General of the Jersey Financial Services Commission until his retirement in 2006. He served on the Council of International Advisors of the China Banking Regulatory Commission from 2003 to 2006. Between 1993 and 2003, he served in the HKMA as Deputy Chief Executive with responsibility for banking stability.