1990-03-17
15-04
BANK OF ENGLAND
Sar!
זוקע
44
DUI JJOI
1.01
Licensed bank: local applicants
(a) Upon application, licences will normally be granted by the Governor in Council under section 16(1) of the Banking Crdinance to a restricted licence bank or deposit-taking company which is predominantly beneficially owned by Hong Kong interests and which satisfies the following three criteria
(b)
(i)
(li)
it is a limited company, incorporated in Hong Kong, which is not a subsidiary of a licensed bank, and which has a paid up capital of at least HK$150 mn;
it has been an authorised institution for at least 10 years;
(iii) it has public deposits (other than from banks, other restricted licence banks or deposit-taking companies, or connected depositors) of at least HK$1,750 mn, and total assets (less contra items) of at least HK$2,500 mn (these figures to be subject to annual review).
A licence will be subject to the condition that the bank becomes, and remains, a member of the Hong Kong Association of Banks.
The Governor in Council retains the discretion to refuse any application even though the criteria are satisfied.
3.
Restricted licence bank
The licensing authority for restricted banking licences (rbl) is the Financial Secretary (FS). Section 25(1) of the Ordinance gives the FS the discretion either to grant or to refuse to grant an rbl. Without limiting the FS' discretion to refuse to grant an rbi, the Ordinance states that an rbi shall not be granted where
(3)
(0)
the share capital issued and paid-up of the company is less than $100mn or an equivalent in any other approved currency, or
the company does not satisfy the FS that it is a it and proper body to be granted
an rbl.
In assessing the fitness and properness of an applicant ((b) above) the FS will have regard to, inter alia, whether
(a) the company is in reputable ownership and the beneficial owner of any holding
of 10% or more of the voting share capital is known;
(0)
+
the company, or if newly formed its parent, is in good general standing within the financial community, and
(c)
the management of the company is in fit and proper hands (applying equally to the head office of the company if it is outside Hong Kong). It has, or plans to have, adequate financial resources and control systems for the scale and nature of its business. At least two persons resident in Hong Kong must be in effective control of the business.
37