HKMA Doesn't Want To Deal With Customer Complaints

by Carla Johnson, Investors Offshore.com

26 June 2002

Speaking on Monday, Chief Executive of the Hong Kong Monetary Authority, Joseph Yam Chi-kwong announced that the HKMA does not want to extend its powers in order to handle customer complaints against the jurisdiction's banks, preferring instead to continue with the current system of self-regulation.

'The current framework of self-regulation by the industry has worked reasonably well and there is no reason why it cannot continue to do so with a bit of help from the banks themselves. We should monitor the situation carefully before rushing into other costly options,' he told finance professionals attending the Hong Kong Association of Banks' semi-annual dinner.

The HKMA Chief Executive revealed that the number of complaints received against banks by the regulatory authority has almost tripled during the first five months of this year compared with the same period in 2001, which 'could indicate that the quality of customer service is deteriorating', according to Mr Yam.

However, he confirmed, the HKMA 'does not seek, or even welcome, an expansion of its powers to satisfy these expectations. On the contrary, at a time of continuing challenge and shrinking resources, we think it sensible to concentrate our energies on our core responsibilities.'

According to a report in the South China Morning Post on Tuesday, he went on to quip that the news: 'may come as a disappointment to those who say that the HKMA has an evil plan for taking over the world by grabbing powers and responsibilities whenever it can.'

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