44.
In connection with the problem banks, the
question was considered as to whether some form of
deposit insurance scheme was feasible. At first glance, such a scheme would be of material assistance in considering the solutions available to a banking problem. The profile of banking in Hong Kong is, however, most unusual. The result of such a scheme would be that a small number of banks would be paying about 75 per cent of the premium, that is, the scheme would have been more of a levy on these
banks which are well managed rather than an insurance scheme with a spread of premiums matching The Financial Secretary accordingly
announced the decision not to introduce a scheme.
the risks.
45.
There is rightly much public interest in the investigations by the police and the I.C.A.C.
into criminal cases in the financial sector and
unfortunately there are many such cases currently in
hand. They should be seen for what they are.
Firstly, they are a sign of the Government's intention to deal effectively with commercial crime which would be most insidious in its effects in the
banking sector if allowed to go unchecked. Secondly, and very important, the action leading to prosecutions in most cases results from cases referred by the Commissioner to the Attorney General
for further action. The Commissioner does not himself prosecute; prosecutions follow the further investigation by the other authorities. A major
difficulty in the public perception is, however,
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