that commercial crime takes a long time to bring to
the Courts and the public tend to think of the court
action as a new case. The sequence of events is
that the Commissioner deals with the problem in the
bank and takes the necessary action to guard the depositors and the viability of the bank. The other
authorities then take over and their action leads to
the court
court case which is generally months after the
bank has shed the problem leading to the
prosecution. There will in 1987 be a number of
court cases
cases involving bank directors or officials.
It should be emphasised that the problems which
caused these malfeasances
already been dealt with.
to become clear have
46.
Two further points should be stressed.
Firstly, deliberate fraud is difficult to detect especially where collusion and senior management are
involved. Bank Examiners have gained much experi-
ence in detection over the last two years but fraud
cases are bound to surface from time to time in any
large financial community. The resolve must be to
deal with it effectively as a deterrent whenever a
Secondly, prudential supervision
cannot give complete protection. The Ordinance is
designed to give "a measure" of protection. The
Office will attempt to see that
that this protection is
as complete as possible.
case occurs.
26