C500
Amendment of Fourth Schedule.
Amendment of Exchange Fund Ordinance.
(Cap. 66.)
BANKING (AMENDMENT) BILL 1987
if, on that date, the Commissioner had given such approval under the proviso to section 87(1), and the provisions of Ordinance shall apply accordingly.
(2) Where, immediately before 1 September 1986, any period allowed under section 23B(2) of the former Deposit- taking Companies Ordinance had not expired then, on and from that date, the unexpired portion of that period shall be deemed to be a further period approved under, and for the purposes of, section 87(2)(a) as if, on that date, the Com- missioner had given such approval under section 87(2)(a), and the provisions of this Ordinance shall apply accordingly.
(3) Where, immediately before 1 September 1986, there was in force any approval under section 27(2) of the former Banking Ordinance then, on and from that date, any such approval shall be deemed to be an approval under, and for the purposes of, section 87(2)(b) as if, on that date, the Commis- sioner had given such approval under section 87(2)(b).”.
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30. The Fourth Schedule to the principal Ordinance is amended in the definition of "relevant bank" in paragraph 1 by deleting "incorporated;" and substituting the following--
"incorporated,
(Cap. 66.) and includes the Exchange Fund established by the Exchange
Fund Ordinance;”.
31. Section 4A of the Exchange Fund Ordinance is repealed.
Explanatory Memorandum
The administration of the principal Ordinance since its enactment in 1986 has shown that certain provisions require amendment to clarify their meaning, improve their practical effect or correct minor drafting errors. Further, the continuing review of the banking industry has shown that amendments to the principal Ordinance are required for the better opera- tion of the industry. The object of this Bill is to make those amendments.
2. Clauses 5(a), 7(a), 9(a), 16(a)(iii), (b) and (c)(ii) and (iii), 17 and 18 respectively amend sections 18(1), 21(2)(a), 24(3)(a) and (b), 75(1)(b), (2)(b) and (3)(a) and (b), 77(1) and 78 of the principal Ordinance to provide that the capital requirements specified in those sections (denominated in Hong Kong dollars) may be met by "an equivalent amount in any other approved currency". Clause 2(a) amends section 2(1) of the principal Ordinance to insert a definition of “approved currency". The definition provides that an "approved currency" is any currency freely convertible into Hong Kong dollars or otherwise approved by the Commissioner of Banking.
3. Clause 2(b) amends paragraph (b)(i) of the definition of "deposit" in section 2(1) of the principal Ordinance to delete the reference to "other than an authorized institution". Thus the definition of "deposit" will not now include a loan of money upon terms involving the issue, by an authorized institution, of debentures or other securities in respect of which a prospectus has been registered under the Companies Ordinance (Cap. 32).