any problem as it arises in the interests of good order and stability in the same way as would other
supervisors jealous of the good name of their
financial centre and of their international
responsibilities. In this way, the Commissioner
will be implementing the consistent policy of the
Government.
43.
The
That is not to say that all banks will be
"rescued". The Commissioner had in place contin-
gency plans for the orderly liquidation of Union
Bank and Hong Nin Bank if buyers for these banks on commercial terms had not emerged. The emphasis in the improved climate will be on commercial solutions
but, as has been repeatedly stressed, each problem
will be judged on its individual merits. Moreover,
the potential difficulties have changed.
problems which arose from mismanagement or mal-
feasance have been largely dealt with. The area of
difficulties in the future is more likely to from competition generally. Investment by overseas interests in Hong Kong banks has helped to restore stability. It has meant, however, that the majority of banks incorporated in Hong Kong now have their major shareholder outside Hong Kong. Their profit- ability and the return to the shareholder will be a
matter of growing significance. The Commissioner
will thus need to note particularly in his rating of
the banks their
management competence and their
profitability.
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