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Enclosure VIII
BANK OF CREDIT AND COMMERCE
HONG KONG LIMITED
I
HEAD OFFICE 21ST FLOOR AOMIALTY CENTRE TOWER HONG KONG
July 15, 1991
Mr. D.T.R. Carse
Commissioner of Banking Hong Kong
BY HAND
Dear Sir
Banking Ordinance Cap. 155) Exercise of Powers under Section 52
We refer to your letter of 9th July, 1991, wherein you have advised us of your intention to exercise the power provided to you under section 52(1)(D) of the Banking Ordinance ("the Ordinance") to report the circumstances of lank of Credit & Commerce Hong Kong Limited ("BC CHK") and BCCI Finance International Limited ("BCCI Finance") to the Governor in Council next Tuesday, 16th July, 1991. You have afforded to us, pursuant to section 52(2) of the Ordinance, an opportunity CO submit representations to you in writing befo.:e exercising your powers under section 52(1)(D). Such representations will form part of your
report.
Representation to the Banking Commissioner
1.
2.
The action taken on 5th July 1991 by the Bank of England against BCCI in England and by authorities in other jurisdictions has created voluminous press comment about BCCI and some of the authorities taking such action. Whether such action was correct will no doubt be the subject of constant commert as more facts become available.
BCCHK and BCCI Finance, as separate legal entities, are concerned with the position in Hong Kong. B(CHK is licensed to run a retail banking business with 30 branches, and has established a significar.t and important role in Hong Kong as a trade finance tank. It is, we consider, fair to say that BCCHK has over the past years played an important part in the Territory's prosperity, extending normal commercial banking services to mostly small to medium sized business.
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