this legitimate business. However, all deposit- taking companies were informed that where there was
evidence of deposit-taking companies controlling
remittances to banks abroad in a manner which could
be construed as an arrangement under the then
Section 26 of the Ordinance, prosecution would
follow. Future examinations will watch very care-
fully for evidence of these types of transaction.
32.
were
Under this
Arising out of case work there discussions about deposit-taking companies with the
supervisors in the Philippines, Indonesia, Thailand
and Macau. Close liaison was also maintained with
the other main banking supervisors notably the United States, Japan and the United Kingdom. This
consultation is of vital importance given the
international nature of banking in Hong
Hong Kong
Kong and
also because of the international understanding
regarding consolidated supervision.
understanding, the Commissioner is responsible, in
effect, to the other supervisors for the operation
of Hong Kong banks or deposit-taking companies in their territories. Apart from this international
responsibility, the case of the Overseas Trust Bank
demonstrates the need for the Commissioner to be
fully aware of the activities overseas of the banks
for which he has the prime responsibility, parti-
cularly towards depositors. During the year, a full
programme of examinations was begun to give a
consolidated view of Hong Kong banks with overseas
branches. This work will be further developed in
1987.
17
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