The Monetary Authority will review its work in promoting the banking system's stability and effectiveness, and has appointed David Carse as consultant to conduct the study.

The authority's Chief Executive Joseph Yam said with the considerable changes and developments in the banking industry in recent years, now is a good time to take another look at how the authority can further strengthen its work in regulating the banking system.

The review, which will start this month for completion in five months, will make recommendations on the focus and priorities of the authority's banking supervisory functions in the next five years.

It will take into account developments including the globalisation of the finance and banking business, the increasing integration of Hong Kong and the Mainland's financial systems, the growing complexity of banking products, the increasing reliance of banks on information technology, the increasing need to combat financial crime, the changing nature of supervision, and the expectations of the community.

Mr Carse was former Jersey Financial Services Commission Director-General and served in the authority as Deputy Chief Executive with responsibility for banking stability between 1993 and 2003.