10
26. Tables giving different breakdowns of the withdrawals from the bank are at Enclosure V. An overall summary of the net withdrawals by different types of instrument is given below:
$mns
O/W Net
Actual loss An ount Amount amount of deposits withdrawn deposited withdrawn to the bank
Cash
37
10
27
27
Cashiers'
orders
72
64
175
Cheques
167
1
Outward
remittances
40
40
other
(CHATS etc)
11
11
327
74
253
27
The above table shows that although a net total of $253mn was withdrawn from the bank on Saturday, the only actual loss of deposits (and thus of liquid assets) arose from the net withdrawal of cash amounting to $27mn. This is because I instructed BCCHK and its clearing bank on the morning of Monday, 8 July to stop all payments by the bank, including those arising from cheques and cashiers orders drawn upon it. This led to Saturday night's clearing being reversed on Monday morning cheques, cashiers' orders and other items drawn upon BCCH accounts as well as those payable to BCCHK customers were returned unpaid.
27. There may, neve::theless, be concern that a large
outflow of deposits could have occurred in the absence of the action I took on Monday and that some depositors night have bene::itted from inside information in taking their money out The breakdown of the gross withdrawals of 327mr. by branch shows that all branches shared in this, with the largest withdrawals tending naturally to come from the largest branches. depositors accounted for about 25% of gross withdrawals, the largest single withdrawal being for $19mn; none of the rest were in excess of $10mn. Only three withdrawals in the form of cash were in excess of Simn, one of these by an individual depositor being for
$3.7mn.
Ten
*
S660 SP8 ZS8
(зSNOH LAOD) BODO SWWOO 02:8T 60-80-1661