Control metabólico del paciente con DM

Figures 2.4, 2.5 and 2.6 provide some balance sheet details regarding retail banks in Hong Kong from 1997 to 2012. It can be seen from the figures, the Asian financial crisis and the global financial crisis has a certain impacts on the retail banks in Hong Kong. According to Figure 2.5, following the Asian financial crisis, the total loans to customers in the retail market declined slightly after 1997,

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reaching a figure of HKD 1,369 billion17 (USD 177 billion) in 2003. However, the total assets and the total deposits from customers increased steadily during 1997 to 2003. This was mainly due to the attraction from high domestic interbank and deposit rates. This led to an increase of funding costs and a decrease of interest margins. After 2003, all of the indicators revealed a trend of fast increase. In 2012, the total assets of retail banks in the Hong Kong banking industry amounted to HKD 8,774 billion18 (USD 1132 billion ), the total deposits of retail banks in Hong Kong banking industry peaked at HKD 6623 billion (USD 854 billion), and the total loans of retail banks reached to HKD 3,632 billion (USD 469 billion). The rise in these numbers show that in recent years the Hong Kong banking industry has grown steadily under the 3-tier banking system. It also seems that the global financial crisis of 2007 to 2008 has had a limited impact on Hong Kong’s retail banks market.

Interest-generating activities have been traditional in Hong Kong’s commercial banking sector for many years. Not surprisingly, most banks still rely mainly on income from traditional banking. Hong Kong banks invest relatively more in loans and less in securities. Take HSBC as an example, the ratio of net loans to total earning assets was 60.29% in 1997. Although this ratio decreased to 46.47% in 2012, compare with the ratio of net fees and commission to total earning assets which was 0.89%, this ratio is much higher. In addition, except HSBC, Standard

17 _{1 HKD= 0.1290 USD. Data source: Bloomberg. Date: 4 June 2014. This exchange rate is used}

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Chartered, Shanghai Commercial and Fubon, the ratios of net loans to total earning assets of the other banks in the sample were higher than 50% in 2012.

Figure 2.4 Total assets of retail banks, 1997 to 2012 (HKD billion)

1998 2000 2002 2004 2006 2008 2010 2012 3000 4000 5000 6000 7000 8000 9000 T otal As se ts Year Data Source: HKMA Annual Reports

Figure 2.5 Loans to customers of retail banks, 1997 to 2012 (HKD billion)

1998 2000 2002 2004 2006 2008 2010 2012 1000 1500 2000 2500 3000 3500 4000 Lo an s t o Cu stom er s Year Data Source: HKMA Annual Reports

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Figure 2.6 Deposits from customers of retail banks, 1997 to 2012 (HKD billion) 1998 2000 2002 2004 2006 2008 2010 2012 1000 2000 3000 4000 5000 6000 7000 De po sit s f ro m Cu stom er s Year Data Source: HKMA Annual Reports

2.3.2 Policy responses after the Asian financial crisis

Hong Kong’s banking system has been undergoing major reforms following the Asian financial crisis, with the aim of increasing banking sector competition and improving safety and soundness of the banking system. In the light of the 1998 Banking Sector Consultancy Study undertaken by KPMG and Barents, a Bank Sector Reform Programme has been undertaken by the HKMA since 1999. In particular, a package of policies were implemented in Hong Kong. In order to encourage market liberalisation and enhance market competition in Hong Kong’s banking sector, a two-phase plan to deregulate the Interest Rate Rules (IRRs) was announced by HKMA in 1999. The IRRs was established by Hong Kong Exchange

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Banks Association19 in July 1964. This is a cartel type agreement between the banks, which prescribes the maximum rate of interests offered on certain Hong Kong dollar deposits. The IRRs are only applied to licensed banks in Hong Kong. Deposit-taking companies and restricted banks are subject to stricter rules on receiving deposits from the public. After the IRRs were abolished in 2001, banks in Hong Kong are allowed to set any interest rates on deposits so that they can compete and the interest rates on deposits are determined by competitive market forces.

In order to provide a level playing field for all banks, the HKMA removed the restrictions on the numbers of branches and offices for foreign banks in 2001. In 1999, this policy was partially relaxed by allowing foreign banks to open up to three branches instead of one. From 2001, there have been no restrictions on the number of branches and offices for foreign banks.

For the purpose of settling Clearing House Automated Transfer System (CHATS) payments, restricted licence banks have been allowed to access the Real Time Gross Settlement (RTGS) system since 1999. The RTGS system was introduced in 1996, and it ensures the safe and efficient settlement of interbank payments in the Hong Kong dollar. It also conducts payments arising from the HKMA’s monetary operations.

Since 2002, HKMA has also relaxed some of the market entry criteria, including reducing the asset size criteria for overseas-incorporated banks, and shortening the requisite period of locally restricted licensed banks and deposit-taking companies

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to upgrade to licensed bank status. In 2012, the HKMA and the Treasury Bureau revised the Banking Ordinance again to update certain market entry criteria for Hong Kong’s banking sector. The amendments removed the restrictions on applying for a bank license which stated that a bank licence must have total customer deposits of not less than HKD 3 billion and total assets of not less than HKD 4 billion. They also removed the restrictions on foreign banks who entered the market through establishing a locally incorporated subsidiary.