• Wed
  • Dec 24, 2014
  • Updated: 9:54am

Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) was established in April 1993 by merging the Office of the Exchange Fund with the Office of the Commissioner of Banking. The HKMA is responsible for maintaining monetary and banking stability, including maintaining currency stability within the framework of the Linked Exchange Rate system under which the Hong Kong dollar is pegged to the US dollar.

 

BusinessBanking & Finance
REGULATION

Norman Chan reappointed as Hong Kong Monetary Authority chief

PUBLISHED : Friday, 21 March, 2014, 4:15am
UPDATED : Friday, 21 March, 2014, 4:15am

Hong Kong's de facto central banker, Norman Chan Tak-lam, has been reappointed with an 8 per cent pay rise, in a move seen by bankers as a bid to sustain the city's financial stability.

Chan, 59, would serve a second five-year term as Monetary Authority chief executive after his current term ends in September, the government said yesterday.

His predecessor, Joseph Yam Chi-kwong, was in office for 16 years, making way for Chan in October 2009.

Financial Secretary John Tsang Chun-wah said he had "every confidence" Chan would be able to continue helping him develop the city as the world's largest offshore yuan centre.

Wilson Chan Fung-cheung, senior consultant to the Institute of Bankers, said Chan would help the banking sector further develop relationships with overseas markets and cash in on yuan reforms. "[Chan] has a good understanding of the mainland and many connections with industry, and both areas give him an edge."

The reappointment would bring continuity in a time of uncertainty, HSBC Asia-Pacific chief executive Peter Wong Tung-shun said. "We believe [Chan's] extensive experience in regulatory policy will help Hong Kong face the challenges of the next five years," Wong added.

Andrew Fung Hau-chung, executive director of Hang Seng Bank, said uncertainties existed because the US was unwinding its zero interest-rate policy. Chan had a track record in developing and regulating the market and was the "most appropriate person", Fung added.

Norman Chan said he was "privileged" to be able to continue maintaining the city's financial stability and promoting its position as an international financial centre.

Chan's annual salary will be HK$6.5 million, 8.3 per cent higher than his current HK$6 million.

He will also be entitled to an annual performance-linked variable payment, capped at HK$2.6 million, up from HK$1.5 million.

Finance-sector lawmaker Ng Leung-sing said he "respected" Chan's pay rise, saying an established mechanism was in place to decide the rate.

Chan's predecessor Yam was previously the world's highest paid central banker, receiving HK$11.9 million in 2008.

Share

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

5

This article is now closed to comments

impala
How do we possibly justify paying this man over USD 1m while the chairperson of the Fed earns under USD 200k and the president of the ECB around EUR 400k?!

All the HKMA really does is maintain the peg, something mostly handled by computers. It doesn't set the interest rate and meanwhile looks the other way when property bubbles form again and again. It doesn't even issue currency!

What does this man do at work all day? I imagine he comes in in the morning, checks if the peg is all right, takes a nap, then goes out for lunch. In the afternoon he has a good hard think about how to spend his HKD 500,000 taxpayer-paid salary this month while enjoying the view from the top floor of the IFC. Tough life.
daily
The HKMA's Chief's job is an easy one and he definitely does not deserve the pay he is getting............HK's so-called de-facto Central bank is not a real one "per se" as it has not authority or influence over the interest rates and etc................Norman Chan's job is simply a figurehead job and anyone with some decent banking experience can do his job..............He's probably still keeping his job because he has learned to be obedient to his masters recently.
zvichadashote
I guess he won't be living in a "cage" apartment in Sham Shui Po.
asiaseen
More likely to be owning them.
daily
You took the words right out of our mouths..........right on.
 
 
 
 
 

Login

SCMP.com Account

or