AD
Bank of CredIT AND COMMERCE
40
9.
We are of the view that the closure of BCCHK may have given a signal to the public that all was not well in the cperation in Hong Kong, and that something may have been discovered over the weekend that was of a sufficiently serious nature that the previous decision that BCCHK stay open had to be reversed. We believe that if BCCHK's doors were row opened without assurances of financial support from the Government, or pledges of support from another substantial banking institut: on, there would be a serious Fun on BCCHK.
10. It is absolutely essential that BCCHK's staff,
depositorS, customers and creditors are fully protected.. At present BCCHK is considered sound, but there is no doubt that the continued closure and uncertainty surrounding BCCHK and BCCI Finance in Hong Kong is causing great hardship to the depositoi S and customers, affects numerous businesses adversely, and furthermore is causing immense cistress to their own staff.
11. We would therefore recommend to The Commissioner of Banking that a purchaser for BCCHK be sought and found without delay. The recent placing into receivership of BCCHK's majority shareholder, BCCI Holdings (Luxembourg) S.A., must make any negotiations simpler to pursue. The protection of the depositors, customers, creditors and staff must be the main concern, and if BCCHK can be sold quickly and its doors reopened, then we would encourage and support The Commissioner of Banking in every way. Regardless, we shall of course co-operate willingly with any other decision may be made by the Commissioner.
that
12. We would only recommend reopening the doors of the Bank in any other circumstances if it be made known to the public that support was forthcoming from the Government or from an Institution such as the Hongkong Bank to а sufficient degree to restore public confidence, whilst a buyer is sought.
Cont'd
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J.
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