A154
Ord. No. 27/86
Banking Advisory Committee.
Deposit-taking Companies Advisory Committee.
Commissioner of Banking,
Functions of Commissioner.
BANKING
PART II
APPOINTMENTS, FUNCTIONS OF COMMISSIONER, Reports BY COMMISSIONER AND POWER OF GOVERNOR TO GIVE DIRECTIONS
4. (1) There is hereby established a Banking Advisory Committee for the purpose of advising the Governor upon any matter connected with this Ordinance, in particular in relation to banks and the carrying on of banking business, and of advising the Governor in Council on each annual report submitted under section 9(1) and in any case where the advice of the Committee is sought under section 53(2).
(2) The Banking Advisory Committee shall consist of the Financial Secretary, who shall be the chairman, the Secretary for Monetary Affairs, the Commissioner, and such other persons, not being less than 4 nor more than 12, as the Governor may from time to time appoint.
(3) The members of the Banking Advisory Committee appointed by the Governor shall hold office for such period and upon such terms as the Governor may specify in their appointments.
(4) In the absence of the chairman at any meeting of the Banking Advisory Committee, the Secretary for Monetary Affairs shall act as the chairman.
5. (1) There is hereby established a Deposit-taking Companies Advisory Committee for the purpose of advising the Governor upon any matter connected with this Ordinance, in particular in relation to deposit-taking companies and the carrying on of a business of taking deposits by such companies, and of advising the Governor in Council on each annual report submitted under section 9(1) and in any case where the advice of the Committee is sought under section 53(2).
(2) The Deposit-taking Companies Advisory Committee shall consist of the Financial Secretary, who shall be the chairman, the Secretary for Monetary Affairs, the Commissioner, and such other persons, not being less than 4 nor more than 12, as the Governor may from time to time appoint.
(3) The members of the Deposit-taking Companies Advisory Committee appointed by the Governor shall hold office for such period and upon such terms as the Governor may specify in their appointments.
(4) In the absence of the chairman at any meeting of the Deposit-taking Companies Advisory Committee, the Secretary for Monetary Affairs shall act as the chairman.
6. There shall be a Commissioner of Banking who shall be a public officer appointed by the Governor.
7. (1) The principal function of the Commissioner shall be to promote the general stability and effective working of the banking system.
(2) Without limiting the generality of subsection (1), the Commissioner shall— (a) be responsible for supervising compliance with the provisions of this
Ordinance;
(b) take all reasonable steps to ensure that the principal places of business, local branches, overseas branches and overseas representative offices of all authorized institutions and local representative offices are operated in a responsible, honest and business-like manner;
(c) promote and encourage proper standards of conduct and sound and
prudent business practices amongst authorized institutions;
(d) suppress or aid in suppressing illegal, dishonourable or improper practices
in relation to the business practices of authorized institutions;
(e) co-operate with and assist recognized banking supervisory authorities of any place outside Hong Kong, whenever appropriate, to the extent permitted by this or any other Ordinance; and
(consider and propose reforms of the law relating to banking business and
the business of taking deposits.
BANKING
Ord. No. 27/86
A155
(3) The Commissioner may from time to time cause to be prepared and published by notice in the Gazette, for the guidance of authorized institutions, guidelines not inconsistent with this Ordinance, indicating the manner in which he proposes to exercise functions conferred or imposed by this Ordinance upon him.
8. The Commissioner may authorize or employ any person to assist him in the Commissioner exercise of his functions under this Ordinance, either generally or in any particular may employ
case.
assistants.
9. (1) The Commissioner shall, as soon as practicable after each 31 Decem- Reports by ber, prepare and furnish to the Financial Secretary for presentation to the Governor Commissioner. in Council a report on the working of this Ordinance and on the activities of his office during the preceding year and, in that report, may set out any measures that he considers necessary for improving the working of this Ordinance and of the activities of his office.
(2) In the report under subsection (1), the Commissioner shall draw attention to any breach or avoidance of this Ordinance that has come to his notice during the preceding year or any irregularity discovered by him in the accounts and records of the financial transactions of any authorized institution for that period which is, in his opinion, of sufficient importance to justify him so doing.
(3) The Commissioner shall, at such times as he considers necessary, report to the Financial Secretary on improvements that he considers to be desirable in the operation and management of his office.
(4) The Governor may, at any time, request the Commissioner to report to him on any matter relating to the working of this Ordinance or the activities of the office of the Commissioner, and the Commissioner shall, forthwith, prepare and furnish a report to the Governor accordingly.
(5) The Financial Secretary shall present to the Governor in Council each report furnished to him under subsection (1) as soon as practicable after it is so furnished.
(6) Where the Governor in Council is presented under subsection (5) with a report furnished under subsection (1) to the Financial Secretary, the Governor in Council may, as he thinks fit, publish the report, in whole or in part, in such manner as he thinks fit or decline to publish any part of the report.
10. (1) The Governor may give to the Financial Secretary and the Commis- Power of sioner such directions as he thinks fit with respect to the exercise of their respective Governor to give functions under this Ordinance, either generally or in any particular case.
(2) The Financial Secretary and the Commissioner shall, in the exercise of their respective functions under this Ordinance, comply with any directions given by the Governor under this section.
PART III
BANKING BUSINESS AND BUSINESS OF TAKING DEPOSITS TO BE CARRIED ON BY AUTHORIZED INSTITUTIONS ONLY
directions.
11. (1) No banking business shall be carried on in Hong Kong except by a Banking business bank.
(2) Any person who and every director and every manager of a company which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 5 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
restricted to licensed banks.
12. (1) No business of taking deposits shall be carried on in Hong Kong except Restriction on by an authorized institution.
deposits.
(2) A registered deposit-taking company shall not take any short-term deposit in Hong Kong,
business of taking