21.

Proposals to amend the

ordinances governing banks ar deposit-taking companies were introduced into the Council a: the end of the last session, and should become law by the ens of the year.

The amendments seek to tighten the restrictions on certain types of lending; to increase the Government's ability to order an investigation into the affairs of banks and deposit-taking companies; and to provide more effectively for the licence or registration of a deposit-taking company to be suspended or revoked where the public interest or the interests of depositors SO require. These changes should give better protection to depositors and investors.

22.

Last week this Council met to enact the Hang Lung Bank (Acquisition) Ordinance. It was necessary for the Government to move swiftly and decisively in this case in order to prevent the failure of the bank, to protect the interests of bank depositors, and to maintain confidence in

confidence in our banking system. The Government intends to restore the long-term viability of the bank and in due course to return it under sound management to private ownership. The Government will also draw from this experience any necessary lessons for the better regulation of our banking system.

23.

Recent

companies have

events

involving certain listed public

the need for some form of

demonstrated

requirement for the disclosure of

the disclosure of shareholdings and dealings. The Securities Commission has recently made proposals which it considers would be in the best interests of the financial community and the investing public. These proposals have been considered and approved in principle by the Executive Council, and the Government is now consulting business and professional organisations on them.

8

/24.

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