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rules made these rules made by the Hong
MR. MARTIN LEE: Sir, were these
or,
Kong Association of Banks entirely out of their own
volition or were they made at the directive,
alternatively, with the gentle persuasion of the Financial
Secretary?
FINANCIAL SECRETARY : Mr. Lee knows me well enough to
know that I rarely direct. I think gentle persuasion is
perhaps the better term.
MR. CHAM : Sir, in the event of depositors
of depositors deciding to
maintain their Hong Kong dollars in cash by withdrawing
from the banks and not keep them in the bank balances to
avoid the negative rates, would this cause any ill effects
on our money supply or our credit markets in Hong Kong?
SECRETARY
FINANCIAL
: Sir, we are getting into quite
difficult and technical areas. I think the short answer
to Mr. Kim CHAM is 'no', it would not cause difficulties,
and the question of large withdrawals of cash has in fact
been addressed by the association and the necessary
arrangements are
in place.
My understanding is that the
two note-issuing banks have already made arrangements for
adequate cash to be available at short notice to meet any
demand.