UMELCO
DRAFT SPEECH BY HON PETER POON, MBE, JP
LEGISLATIVE COUNCIL
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28.5.1986
Banking Bill 1986
Sir,
I declare an interest as a director of Hang Lung Bank, Overseas Trust Bank and Hong Kong Industrial and Commercial Bank.
Having said that, I welcome the Banking Bill 1986. It is a Bill consolidating the laws regulating both banks and deposit-taking companies and incorporating very substantial improvements to the prudential supervision of these institutions.
One provision in the Bill is particularly helpful to auditors. I refer to Section 61 which provides for tripartite meeting of the directors, the auditors and the Commissioner of
Banking to discuss the affairs of a bank. I understand that the
Hong Kong Society of Accountants has been consulted and supports
such arrangment. Hitherto, auditors of banks are often in a dilemma when they find it necessary or appropriate to discuss clients' affairs with the Commissioner of Banking but are refrained from doing so because of the question of confidentiality. The new provision will facilitate useful
exchange of views which will enable problems to be identified at
an early stage and possibly enable them to be solved or dealt with
as the occasion arises, and not until the audit report has come
out.
I am
I shall later on move at Committee Stage a number of amendments to the Bill for reasons which have already been eloquently given by my honourable colleague Mr John Swaine. satisfied that, the Bill, after the various amendments proposed, will give the Commissioner of Banking adequate but not excessive powers. I am also convinced that the Bill, if passed, will greatly strengthen the existing extent and quality of banking
supervision.
With these remarks, Sir, I support the motion.
UMELCO