About Monetary Authority of Macao
The reform policy which started in the Mainland since the end of the 1970s has not only been the major driving force for the significant economic growth there, but has also contributed to the economic development of both Hong Kong and Macao. As a result of this favourable economic situation, as well as the political stability achieved in Portugal, which at the time administered the territory, Macao could capitalise on the conditions and the rapid pace of the regional development.
Realising the need to draw up an appropriate and regulatory framework for this opportunity, the previous administration of Macao created in 1980 the Issuing Institute of Macao1 (IEM) as the regulator of the financial sector of Macao, which includes banking, insurance and other credit related activities. The main objective was to ensure sound growth of the financial sector and to protect the interests of those involved as allowed by law. Responsible for the issuing of the local currency, the pataca, as well as the management of the exchange reserve of Macao, the IEM in fact played the role of a quasi-central bank and currency board of Macao.
On the banking side, a newly amended decree law was enacted on August 3, 1982. After eleven years of implementation, and realising the need to cope with the fast-changing banking industry, the Financial System Act of Macao was promulgated on July 5, 1993. On the insurance side, respective legislation were effected on December 28, 1981, February 20, 1989 and June 30, 1997, in order to cope with the pace of the development of the insurance industry… Continue reading about Monetary Authority of Macao here.