Mr Stone
Rijpoly
Nerd. 2514/190
Um.
Davia
WIISUil
香港總督府
Miss Marsden HUD
Marsden
As discussed at thein morning's meeting,
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the
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INDEX
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9.30
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GOVERNMENT HOUSE
HONG KONG
Mkc 102/2
(ca Apri
MAY 1990
be grateful for a note on granting of bank licences In Hic, particularly the point at X.
X
3014
GADA
Abril 1990
(20)
Sir P. Cractoch
26 APR 1990
Is Mi Maude
ir Gillmor It's Carnick
Miss Marsden, thi)
Thank you for your letter of 22 March about Jardine Fleming.
** 30/4
09.30
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25%,
Jardine Fleming's application for a banking licence has been carefully considered by ExCo on several occasions. The Council took the view that the criterion that a local applicant should be predominantly beneficially owned by Hong Kong interests was not clearly met in this particular case. Rather than reject the application, the Council decided to postpone a decision until the licensing criteria for locally incorporated applicants had been reviewed.
That review
was completed early this year. ExCo then decided that there was no good reason to make any changes until it could be seen how the revised three-tier system of authorisation, which was then about to come into operation, worked out in practice.
You might find it useful to know that, in reaching the view it did, the Council was particularly mindful that the changes to the licensing structure, which came into effect on 1 March this year, were expressly designed to assist the international status and standing of institutions operating from Hong Kong. The Council noted that a need to enhance the
international perception of Jardine Fleming had been a key reason for its application. Under the new system, Jardine Fleming is now a restricted licence bank. If it wishes it is able to describe itself as an investment bank. I hope that this will help it in its wish to gain better access to overseas markets.