The Hong Kong Institute of Bankers

BANKING TODAY is a highly recommended reading for anyone involved in the banking and financial industries in Hong Kong and the region. It is particularly suitable for those who are interested in knowing and exploring depths and insights on the banking financial news.

The magazine looks at the people who are creating opportunities in Hong Kong and provides perspectives of senior members of the banking community on key issues.

BANKING TODAY is the official journal of the Hong Kong Institute of Bankers. The journal covers a wide spectrum of regular columns ranging from banking practices, legal updates, to business IT. A section focuses on information relating to the Institute's membership activities and news.

All members of the HKIB receive a personal copy of Banking Today by mail. Any interested parties can also subscribe to this unique publication at the special price (HK$360 for one year subscription, 6 issues for local subscribers/HK$460 for one year subscription, 6 issues for overseas subscribers) simply by completing the Subscription Form and either posting or faxing it to HKIB Subscription Department, 3/F Guangdong Investment Tower, 148 Connaught Road Central, Sheung Wan, Hong Kong. For advertising and sponsorship opportunities, please contact Ms Lam at (852) 21537881.

Current issue - July / August 2007

	Contents
	Legal Update Counter fraudulent website in China As more and more people are now relying on the Internet to research for information and conduct online transactions, companies may wish to ensure that their customers are visiting the right websites to obtain their information and to strike deals.
	Bonds A win-win initiative The RMB bind business in Hong Kong will be a win-win solution for Hong Kong and the Mainland. It will benefit the future developments of financial markets in both Hong Kong and the Mainland in a significant way.
	Recruitment Talent competition in Asia Although this is a perennial trend, few inroads appear to be made to address the challenge of talent shortages in Asia.”.
	Bonds RMB binds in Hong Kong ¡V A welcomed milestone The issuance of retail bonds overseas is a very crucial step which not only helps the authority in China to raise capital but also provides another investment tool for foreign investors who want to invest on the China theme.”.
	Cover Stories Chasing deposits ¡V An uphill battle US retail banks, thrifts, and credit unions of all sizes are competing fiercely for deposits. Indeed, of the various funding sources that financial institutions can tap, deposits are the most stable and inexpensive.
	China Banking Going public in a big way Looking at listed Chinese banks, owing to the accessibility of widely-available data, provides us with an ideal barometer of how well the sector is doing overall, and where it is heading. Due Diligence The scope of financial due diligence Due diligence is a process every serious investor will require, and investing in China would definitely require a serious due diligence.
	Interview
	Reap the benefit of risk control Recognising and managing risks effectively has become a vital part of banking operations today. John Foulley, Risk Management Practice Head of Field Strategy and Support with SAS Asia Pacific, discusses the evolution of credit risk management practices and looks into the challenges and benefits banks can acquire through the process of regulatory compliance.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - May / June 2007

	Contents
	Legal Update The new PRC property law The passing of the new PRC Property Rights Law on 16 March 2007 by the National People’s Congress has attracted widespread attention around the world.
	Risk Management Beyond Basel II: Risk Adjusted Performance Management Basel II is an opportunity to build an enterprise-wide Risk Adjusted Performance Management framework.
	Money & Banking Trade laundering: A favorite with money launderers While trade laundering is an old method of laundering money and now even used in terrorist financing, controls on banks have traditionally not been strong with banks hiding under the pretext “we deal with documents and not with goods”.
	Cover Stories A promising outlook for wealth management in China Rapid and sustained economic growth in China has generated a pool of funds held in individuals’ savings accounts now estimated at some US$2 trillion, or 77% of annual Gross Domestic Product. Wealth management: How to sustain growth in China? Banks in China only Have a Short history of managing the wealth of their customer but it is seemingly an integral part of their core business development strategies.
	Corporate Governance Reshaping the market with better rules In view of the potential adverse impact of poor corporate governance on the economy, central government and regulators have pushed forward a series of revised laws and regulations to reshape the market. Foreign Exchange The changing face of the FX market Can banks continue to dominate in a market increasingly driven By new players?
	Interview
	Securitisation takes off in Asia Maries Lam, Vice President/Senior Analyst Finance Group of Moody’s and her colleague Li Ma, also Vice President/Senior Analyst, Structured Finance Group with the credit rating agency, discuss with us the trend of Asian structured finance including the vast potential of the China market.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - March / April 2007

	Contents
	Legal Update China's Employment Contract Law On December 24, 2006, the Standing Committee of the National People’s Congress conducted the second reading of the proposed Employment Contract Law.
	Risk Management Beyond Basel II There has been some discussion around the implementation of the Basel II Capital Accord, to the effect that the costs are likely to outweigh the benefits.
	Money & Banking The real cost of cash Efforts to persuade us that plastic is better than cash are far from convincing for people living in the real world, Keith Blogg discovers.
	Cover Stories RMB bonds get going In January this year, the Standing Committee of the State Council of the PRC announced further expansion of the offshore RMB business in Hong Kong. Hong Kong bond Market - On the right track Hong Kong has been a popular bond issuance place in Asia. We have the highest proportion of overseas issues within the region with active players like borrowers, financial institutions and corporations both locally and from overseas.
	Market Reporting Achieving international best practice Are Asia’s financial services firms meeting the expectations of analysts and other stakeholders? Litigation Discovery by banks — Lightening the load This article briefly considers some of the legal and practical issues which banks may face when dealing with disclosure of documents.
	Interview
	Weighing your AML risks Neill Poole, Managing Director of global professional services firm Alvarez & Marsal Asia Limited, tells us what the banking industry needs to do more in compliance and the increasing tendency towards a risk-based approach.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - January / February 2007

	Contents
	Legal Update PRC targets money laundering activities Recently, a number of rules were released to curb money laundering activities in the PRC and to establish a reporting system on big money and suspicious deals.
	Human Resources The challenges for employers With so many employers fishing in a relatively small pool of high quality candidates, success will depend on the company’s ability to be less rigid and to think out of the box.
	Bankruptcy Law New law on bankruptcy in the PRC – Part two This article is part Two of a two-part series discussing the new law on bankruptcy in the PRC.
	Cover Stories WTO opening: The next move for china’s domestic banks China’s domestic banks gird themselves for battle as the banking sector is fully opened up to foreign competition. Cutting a path into the China banking market In accordance with its year five World Trade Organisation commitments, China has now issued the Regulations of the People’s Republic of China on Administration of Foreign banks.
	Technology Strategic IT initiatives for good governance The Writer looks at some of the initiatives mentioned in the report ”Top 10 Strategic Initiatives in Asia Pacific Banking for 2006: Technology Meets Good Governance ”, released by Financial Insights.
	Interview
	The status of Hong Kong’s corporate governance Leanne Palmer, Manager of Business Risk Services with Grant Thornton, Shares with us the corporate governance performance of Hong Kong’s financial sector and discusses what companies need to do batter.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - November / December 2006

	Contents
	Legal Update Does it solve all the problems? After four years of discussion, the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters was finally signed between the Hong Kong Department of Justice and the Supreme People’s Court of the People’s Republic of China in July this year.
	Consumer Credit The challenge of new reglime in the UK Significant changes to the UK’s consumer credit regime are on their way.
	China Banking China’s banking Landscape with WTO transition It is good time to review what China has achieved in market opening and banking reforms during the WTO transition.
	Cover Stories The evolving landscape of wealth management The need to plan financially for the future is now no longer a luxury for an elite minority, it is a necessity for the majority. Marking a difference with CRMs Banks are relying increasingly on their client relationship managers (CRMs)to become their differentiation factor in this competitive market.
	Bankruptcy New bankruptcy law in the spotlight The centenary of the first ever law on bankruptcy on China(1906) is aptly met with the birth of the first bankruptcy law in the PRC in 2006.
	Electronic Banking The genuine paperless solution: Electronic Forms Most of the electronic forms available today are not achieving their true potential.
	Interview Addressing the risk of corrupt practices Timothy L. Dickinson, Partner in the Washington D.C. office of Paul, Hastings, Janofsky & Walker LLP, discusses the latest developments in the enforcement of the Foreign Corrupt Practices Act.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - September / October 2006

	Contents
	Legal Update: New M&A regulation impose increased barriers on foreign investment The PRC regulators issued important new M&A regulations in August this Years.
	Risk Management : Fraud risks in emerging markets Fraud is possibly the worst enemy of the banker. Cash is, by definition, the most fungible asset there is, making the threat of internal fraud a continual nightmare for any banker in charge of operations.
	Anti-money Laundering : Catch them – You can Yesterday’s fraud management techniques are inadequate for combating new generation fraud.
	Securitization: Structured finance in Asia and the Pacific: Liquidity versus credit risk Recent years have seen a remarkable growth in the securitization of domestic assets in Asia and the Pacific.
	Cover Stories Embracing new trends and challenges to come out on top Helping ensure a financial institution has all the hallmarks for success in 2010 necessitates the building of a more global outlook into their business the journey needs to start today say Jack J. Ribeiro and Chris Gentle at Deloitte & Touche. Winning the battle for growth: Building the customer- centric financial institution Financial institutions operating in Asia face a choice: get closer to the customer or lose out to rivals who do. Only by being customer- centric can institutions capitalize in a sustainable way on the opportunities being created in the region.
	Electronic Banking: Emerging changes of e-banking in the PRC The Chinese regulators have recently promulgated the Measures for the Administration of Electronic Banking Business and the Guidelines on E-banking Security Evaluation to regulate electronic banking services.
	Interview: Striking a balanced approach to vetting loans Daniel C Y Lin, Partner of Moores Rowland Mazars, says there are factors other bricks and mortar to consider for business organizations, especially smaller companies, to secure access to funding.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - July / August 2006

	Contents
	Legal Update: Protect your names in the cyberspace – A Chinese law Perspective What are the possible rights you can register in China to protect your brand?
	M & A : Banking on growth of merger and acquisition deals Merger and acquisition (M&A) activity among financial institutions in Asia is expected to gain momentum.
	Presentation Skills: Create an experience – “Seeing is believing” Many a presenter sets out to deliver excellence and professionalism. However, quite often the audience is bombarded and overloaded with information.
	Cover Stories Fast track to QDII handing of outbound portfolio investment Qualified commercial banks, mutual funds, securities institutions and insurers will be given greater freedom to invest clients’ money in financial products outside China. New frontiers for capital outflow and RMB exchange The announcement China made in April, generally referred as the new QDII measures marked a major step for easing control of capital account on RMB exchange rate.
	Recruitment: An escalating war for talent Now the question we have to answer is not whether we can bounce back. Rather, the question is whether we have the human capital to catch this wave of economic opportunity and ride it.
	Dispute Solving : Getting paid in China – The role of arbitration Over the last two decades, arbitration has become increasingly popular among both foreign investors and domestic parties in China.
	Interview: The fight goes on Michael F. Zeldin, Principal of Deloitte Financial Advisory Services LLP, and Tim Phillipps, Asia Pacific Lead Partner of Forensic and Dispute Services with Deloitte Touche Tohmatsu, share their insights on the global initiative to combat money laundering.
	Chinese Briefing
	HKIB News The Latest Happenings

Current issue - May / June 2006

	Contents
	Legal Update: Chinese banks benefit from the new overseas investment regime The Chinese financial authorities have recently issued new regulations which will increase the potential for banks to offer financial products to their clients in China.
	Risk Management: Credit risk management: The business case for banking Basel II as the catalyst in translating optimal risk management polices into maximum return on equity for the bank.
	Transition Management: Shopping for transition managers In a transition, the transition manager's and the fund managers's skill sets are as different as Jack Niklaus' and Michael Schumacher's. Do you know what to look for?
	Cover Stories Facilitating trade finance Three industry experts discuss the latest trade finance technology Export finance: Financing Asian borrowers Is Export Credit Agency supported financing still a relevant means of financing for Asian borrowers? Emerging threats and opportunities for banks in trade finance and services The evolution of the trade finance market is both a threat and an opportunity for banks
	Record Keeping: Will Sarbanes Oxley survive? Sarbanes Oxley Act of 2002 (SOX) has certainly done better than anticipated, but during the past months, some events seen to signal that the days of SOX could be numbered.
	Technology: The myth of the mastermind The option to buy off-the-shelf is a valid strategy for both small and large institutions alike.
	Interview: Credit risk swapping with eyes wide open Banking Today speaks with risk management expert Maurice Ewing to learn the finer points of making money from credit risk.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue - March / April 2006

	Contents
	Legal Update: Accountants' liability to third parties for negligent misstatements In view of the wide range of persons who might reply on published accounts for different purposes, the question of accountants' liability to third parties has assumed great practical importance.
	Asset Management: Asset managers align behind customer interests In this article, financial experts look at the soothing power of relationship-based asset management.
	Forex: The role of fundamentals in exchange rate determination This article explains the link between the modern micro perspective propagated by traders and the older macro perspective.
	Cover Stories US Treasury's curve ball There is one very large cloud looming on the horizon. The US Treasury yield curve has now inverted. Inflationary fears stalk investors The market is fully discounting further rate rises that will likely take the fed funds rate to 5 per cent in two increments.
	AML: What AML/CFT technology cannot do for you Technology is just one component of an effective risk-based enterprise-wide AML/CFT programme.
	China: On the record A number of internal and external factors are pushing banks to speed up the transformation in the role of internal audit in China.
	Operational Risk: Imaging the impossible The new Basel Capital Accord (Basel II) requires financial institutions to include operational risk along with the traditional categories of credit risk that are used to estimate capital requirements.
	Interview: Giving the trading floor a voice Anne Llewelyn, Marketing Director, Asia Pacific at IPC Information Systems, explains the benefits of VoIP in the trading floor.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue - January / February 2006

	Contents
	Legal Update: Consumer protection for bank customers - A changing scenario Ko traces the development of consumer protection in the banking sector through recent court decisions and postulates the trend for the future.
	Customer Service - It's an attitude not a department A guide to dynamic customer service performance.
	Cover Stories Credit risk in the Basel context Lending, and managing the risk associated with it, is as old as banking itself if not older. Although banks have refined the art, the subject paradoxically remains topical. Clear guidance to sound practices Credit risk management is a critical component of a bank's overall risk management strategy and is essential to the long-term success of any banking organisation. Debt Recovery Is debt recovery possible in-house or should banks outsource it to lawyers or debt collectors, asks Atradius' Malcolm Terry.
	Derivatives: Derivatives management systems: Ready for prime time? After years of obscurity, the derivatives management system market appears poised for prime time..
	In Practice: Who says change happened? Can people really change? Chris Lonsdale considers whether behavioural change can be measured.
	Interview: Credit risk on a tight rein Vernon Smith, Head of Consumer Credit Risk Asia-Pacific at HSBC, discusses the practical issues he faces with daily lending decisions.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue - November / December 2005

	Contents
	Legal Update: An era of new financial reporting The adoption of the fair value model under Hong Kong's new financial reporting standards may give rise to challenges in determining the proper tax treatment for the differences between fair market value and the book value.
	Corporate Governance: Fulfilling new expectations Sponsor's pre-IPO due diligence on the controls of a listing applicant's management and accounting systems.
	In Practice: Off-balance sheet risk: Investigative due diligence Go past the numbers to a whole new world of possible risk ready to erupt.
	Cover Stories Understanding credit risk: The need for a transformation process An in-depth look at credit risk measurement, methodology and architecture. Operational risk and the Basel II Accord Peter Vinella looks at how to measure operational performance and how to set realistic targets.
	Securities: Hybrid securities finally hit corporate segment A discussion on how hybrid securities can be a useful addition in the capital structure and shore up the credit profile of an issuer.
	Behavioural Finance: Nectar gathering for novices: The physics of delayed gratification Philippa Huckle explains how an effective dollar cost averaging strategy can produce above-average long term returns.
	Interview: Foreign banks' prospects in China Mervyn Jacob, Partner, Financial Services Leader for China and Hong Kong, PricewaterhouseCoopersm, discusses foreign banks' prospects in China.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue - September / October 2005

	Contents
	Legal Update: Value Added Tax - oversights may be expensive To align with the economic policies and meet foreign expectations, the Chinese government introduced reforms at the national level to rectify the country’s localised practices in various aspects of which, VAT(Value Added Tax) is one of the key focuses of reform.
	In Practice: Advanced marketing automation for banking Maximising campaign returns through customer intelligence.
	Anti-money laundering: A new front – IPR theft, money laundering and terrorist financing The banking industry is exposed to significant risks of money laundering and terrorist financing of the proceeds of IPR theft.
	Cover Stories Asia’s next generation Asia’s billion boomers are creating new regional domestic demand and will become the world’s driving force. Age does matter Datamonitor outlines the growing importance of the over-50s age category for financial services providers.
	Straight-through processing: straight-through processing in the multi-vendor environment There is growing pressure on banks to automate their back-office trade settlement procedures, but what exactly is straight-through processing and how should companies choose a broker?
	Bancassurance: Banking by insurance companies: Is there a successful strategy? The convergence of the financial services industries in the United States, particularly banking and insurance, has gained significant momentum in the past 10 years.
	Interview: Getting to the heart of the matter Getting to ‘really’ know your customers is increasingly important, not only because of regulatory requirements, but also for a bank’s profitability. Joseph Wong, a partner in business consulting services at IBM China/Hong Kong Ltd explores how banks can use CRM(customer relationship management) to generate strategic value and revenue growth.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue – July/ August 2005

	Contents
	Legal Update: Exercise of judicial discretion It has been a recent trend in the practice for the Courts to raise the issue of non-enforceability of loans under the Money Lenders Ordinance, Cap.163 of the Laws of Hong Kong (Ordinance) where applicable.
	In Practice: Stop selling and accelerate your business Sales techniques vary from person to person but there are a few adjustments to mindset that can be made to raise each account manager's productivity.
	Venture Capital: Exploration-exploitation dilemmas of venture capital companies The role of organisational slack and time horizon.
	Online Banking: Secure banking The internet has become the indispensable tool for the 21st Century business - it has also become a criminal target.
	Cover Stories Beyond guaranteed funds - the new darlings All good things come to an end and the public's fascination with guaranteed funds is no exception. The catalyst for this changing appetite was the shift in the US yield curve. Growth with controlled downside risk Strategies that balance risk and reward, at any time in the market cycle. Global REIT investing The changing investment environment has returned property to the fold
	NPLs: Asia Pacific banking structures:applying past lessons to strengthen future performance Asian governments and banks can better position themselves to complete globally by addressing corporate goverance, credit risk management, and the disposition of nonperforming loans (NPLs).
	Interview: Financial planning - work in progress During a recent speaking tour of Singapore and Hong Kong, Paul Clitheroe spoke to Banking Today about what lessons we can draw on from Australia's experience with financial planning.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue – May/ June 2005

	Contents
	Legal Update: China is ready for a new bankruptcy law A new comprehensive bankruptcy law is expected to take effect in 2005. The Draft Law applies equally to both state-owned and private entities and introduces much-needed certainty to the current framework.
	Banking Consolidation: A chance for Asia to get it right A second phase of consolidation is sweeping across Asia’s banking sector, as more banks open up to foreign direct investment rather than relying on government support.
	Payments Processing: Integrating trade finance and payments Beyond remittances there is a large volume of payments made via trade finance instruments that can be integrated into payment systems.
	Technology: Reaching efficient frontiers in IT investment management What financial services CIOs can learn from portfolio theory.
	Cover Stories A great banker Every banker wants to be one and every bank wants to hire some. Mental DNA and competitive advantage The ability to identify mission critical roles and cloning the process will give you an edge. Talent scouts In an interview with Banking Today, the founders of Leadingenes outline the importance of detailing competencies, career development and professional qualifications in banking organisations.
	ATM Security: Protecting banks in the digital age Financial institutions are being threatened by a new breed of criminals with the expertise to penetrate defensive systems that cannot adapt to changing risk. Peter Helis explains the bad guys' tactics and some of the innovative solutions needed to thwart them.
	Chinese Briefing
	HKIB News The Latest Happenings

Back issue – March/ April 2005

	Contents
	Legal Update: Prospectuses take on new meaning Mark Shipman outlines the changes brought into force by the Companies (Amendment) Ordinance to the current Hong Kong prospectus regime.
	Anti-money Laundering: The AML compliance programme documentation A new era of global best practices brings with it new regulatory expectations in terms of the quality of the overall anti-money laundering (AML) programme documentation. Rohan Bedi of PricewaterhouseCoopers focuses on the key issues.
	Industry Outlook: Top 10 Issues for 2005 The challenge for senior management this year is to take advantage of a favourable economic outlook in most countries.
	E-Banking: Circumventing online fraud E-banking has taken off in Hong Kong, but with its growth so has 'phishing' emerged as a threat to undermine the steps taken to develop online banking.
	Cover Stories Speaking out The path to financial success seldom runs smooth – even for the super-rich. Expanding product choice Structured products come of age in Asia. Raised expectations Alternative investments for banking clients.
	China Investment banking in China: growing profits Foreign competitors have high expectations of the Chinese investment banking market, but a long-term commitment to the region is essential for players that wish to build stable businesses and reap good profits.
	M-Banking: Contactless mobile banking South Koreans take the mobile phone banking experience to a new level.
	Interview: Are China's big banks turning the proverbial corner? Wei Yen, the Managing Director of Financial Institutions & Sovereign Rish Group, Asia Pacific at Moody, tackles the issue of banking reform in China.
	Chinese Briefing
	HKIB News The Latest Happenings