MR.
DESMOND LEE
self-regulatory
body for
15
1
Sir, since there is no statutory
deposit-taking
companies,
how
legally enforcible will such negative interest rates be
for the deposit-taking companies?
the
FINANCIAL SECRETARY : Sir, the Deposit-Taking Companies
Association announced yesterday that they supported
introduction of negative interest rates as a measure to
curb speculative activities on a stronger Hong Kong dollar
against the US currency. The Deposit-aking Companies
Association has also indicated
also indicated that they will be issuing
guidelines for their members to follow. It is worth
remembering, Sir, that registered deposit-taking companies
are, in any event, prohibited from accepting deposits
under three months. The only deposit-taking companies
that would be affected are the licenced deposit-taking
le
companies.