In December 2007 the HKMA appointed the independent consultant and former Jersey banking regulator, David Carse, to conduct the review.

The review covered a wide range of areas, including recent trends and issues in banking, the Monetary Authority's functions and powers under the Banking Ordinance, the supervisory and policy frameworks, authorization of financial institutions, and safety-net arrangements.

The report finds that the Hong Kong banking system is currently in robust condition and that the HKMA is widely respected by the Hong Kong banking sector for its professionalism and effectiveness, and viewed by outside commentators as in the top flight of regulators internationally. No fundamental deficiencies in the regulatory and supervisory framework or processes have been identified. The report recommends a number of measures to provide an even sounder foundation to cope with the challenges ahead.

The Chief Executive of the HKMA, Mr Joseph Yam, commented: "We welcome the report, which is professional and comprehensive, and provides much food for thought. We will study the findings and recommendations carefully, in consultation with relevant parties, to see how they can be applied to further strengthen our work in maintaining banking stability."

The HKMA will carry out a public consultation on the report until 31st October 2008. The Authority will then formulate a detailed policy response on how it can best carry out its functions in promoting the general stability and effective working of the banking system.