AFR 09 '86 16:47 GIS HK
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R JOHN EMPHASISED, HOWEVER, THAT EACH CASE WAS DIFFERENT AND MUST BE HANDLED ON AN AD HOC BASIS. +NO BANKER AND CERTAINLY NO SHAREHOLDER IN A LOCAL BANK SHOULD BE LULLED INTO AN IMPRUDENT BELIEF THAT IF HE GETS INTO TROUBLE EXCHANGE FUND SUPPORT IS INEVITABLE,+ HE WARNED.
HE ADDED THAT +THE FINANCIAL SECRETARY WILL NOT AGREE THAT GOVERNMENT MONEY SHOULD KNOWINGLY BE PUT IN THE HANDS OF THOSE WHO CANNOT BE TRUSTED.+
LOOKING BACK OVER THE PAST FOUR YEARS. SIR JOHN ATTRIBUTED HONG KONG'S BANKING PROBLEMS TO A VARIETY OF FACTORS, INCLUDING A SUPERFLUITY OF DEPOSIT-TAKING COMPANIES. THE ENDING OF THE MORATORIUM ON THE ISSUE OF BANKING LICENCES, CLERR INSTANCES OF MALFERSANCE AND CORRUPTION, THE PROPERTY BUST, VARIOUS RECENT DEVELOPING PROBLEMS IN SOUTH-EAST ASIA AND A FAIR DEGREE OF INCOMPETENT BANK MANAGEMENT.
HE ALSO ADMITTED THAT GOVERNMENT SUPERVISION OF THE BANKING INDUSTRY REQUIRED STRENGTHENING. +OTHERWISE WE WOULD NOT BE CONSIDERING WITH URGENCY A NEW BANKING BILL, HE SAID.
SIR JOHN RDDED THAT HE KNEW OF NO MORE IMPORTANT TASK FOR THE EXECUTIVE COUNCIL THAN TO COMPLETE CONSIDERATION OF THE BANKING BILL AND GET IT ON TO THE STATUTE BOOK.
FINALLY. SIR JOHN SAID THAT THE NEW BANKING BILL INCLUDED PROVISION FOR AN ANNUAL REPORT BY THE COMMISSIONER THROUGH THE BANKING ADVISORY COMMITTEE TO THE EXECUTIVE COUNCIL. WITH THEIR APPROVAL THE REPORT CAN THEN DE PUBLISHED ANNUALLY. THIS MIGHT WELL BE TIMED JUST BEFORE EACH YEAR'S BUDGET DERATE AND PRODUCE A FORM OF ACCOUNTABILITY IN THIS VERY SENSITIVE AREA,+ HE SAID,
HE ALSO DISCLOSED THAT THE GOVERNOR INTENDED IN DUE COURSE TO APPOINT TWO ADDITIONAL KNOWLEDGEABLE LOCAL MEMBERS TO THE EXCHANGE FUND ADVISORY COMMITTEE. ONE OF WHOM WOULD BE A MEMBER OF THE LEGISLATIVE COUNCIL.
TIME:
HOURS/SFL
DATE: APRIL 9, 1986
TIME: 1615 HOURS / SFL DATE: APRIL 9, 1986
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