CONFIDENTIAL
FM HONG KONG
CONFIDENTIAL
Copied to Elsten (B. of England)
HKA C11/2
fou
23/10
23
102656 MDLIAN 5589
TO PRIORITY FCO
TELNO 2432
OF 020730Z OCTOBER 92
22
TOP COPY Q DIST?
HONG KONG TELNO 2392: AT THE PART I MEETING OF THE EXECUTIVE COUNCIL HELD ON 29 SEPTEMBER, THE COUNCIL ADVISED AND THE GOVERNOR ORDERED THAT:
(A) (MEMORANDUM XCC(92)152 REFERS)
THE FOLLOWING CHANGES SHOULD BE MADE TO THE CRITERIA FOR AUTHORISATION
FOR FOREIGN BANK APPLICANTS
(I) THE ASSET SIZE CRITERION SHOULD BE INCREASED FROM US DOLLARS 14 BILLION TO US DOLLARS 16 BILLION:
(II) THE CRITERIA CONCERNING HOME SUPERVISION AND CONSENT BY THE HOME AUTHORITIES SHOULD BE REVISED TO REQUIRE
(1)
INCORPORATION IN COUNTRIES THE SUPERVISORY AUTHORITIES OF WHICH (THE HOME AUTHORITIES) HAVE ESTABLISHED, OR ARE ACTIVELY WORKING TO ESTABLISH, THE NECESSARY CAPABILITY TO MEET THE MINIMUM STANDARDS FOR SUPERVISION OF INTERNATIONAL BANKS RECOMMENDED BY THE BASLE COMMITTEE: AND
(2) CONSENT OF THE HOME AUTHORITIES FOR THE ESTABLISHMENT
OF A BRANCH IN HONG KONG:
FOR LOCAL APPLICANTS
(III) THE ASSET AND DEPOSIT SIZE CRITERIA SHOULD BE INCREASED TO HK DOLLARS 4 BILLION (FROM HK DOLLARS 2.5 BILLION) AND HK DOLLARS 3 BILLION (FROM HK DOLLARS 1.75 BILLION),
RESPECTIVELY:
(IV) THE CRITERION THAT THE APPLICANT COMPANY IS
PREDOMINANTLY BENEFICIALLY OWNED BY HONG KONG INTERESTS SHOULD BE REPLACED BY A CRITERION THAT THE APPLICANT COMPANY IS
PREDOMINANTLY BENEFICALLY OWNED BY HONG KONG INTERESTS, OR IN THE OPINION OF THE GOVERNOR IN COUNCIL, IS OTHERWISE CLOSELY ASSOCIATED AND IDENTIFIED WITH HONG KONG: AND
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