47.
Turning to the new legislation, as might
have been expected for an Ordinance with some
some 150
clauses, a number of largely correctional amendments
are necessary without any change of policy. These
are currently under examination by the Advisory Committees and will be put to the Executive Council
for drafting authority at an early date. Generally, however, the Ordinance seems to be providing
satisfactory framework for a reasonably balanced
form of supervision. The question for 1987 will be
how far we need to change the mixture to meet the
constantly developing financial scene.
a
48.
The Governor in Council examines each year the size criterion taken as a general guide for the acceptance by the Commissioner of applications for
banking licences. As a result of the review in
1986, foreign banks applying for licences in Hong
Kong have to meet the size criterion of assets (less
contra items) of US$14 billion. The Financial
Secretary, however, indicated later that there
might, in special cases, be exceptions to this
criterion.
49.
One of the major changes in 1986 has been
the growth in the importance of mainland China interests in banking in Hong Kong and of the wish of
other interests from China to enter the banking
sector. With 15 banks now under direct control, it
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