CONFIDENTIAL
XCC(92)152
23
We therefore recommend that this criterion should be removed. To exclude applicants which are, effectively, divisions of their parent banks, we also recommend that it should be replaced with one of the criteria already applied to RLB applicants i.e. if the company is a subsidiary or an associate of a licensed bank in Hong Kong, it must be widely recognised as an entity in its own right, and have a separate management structure at executive level.
FINANCIAL AND STAFFING IMPLICATIONS
24
There are no financial or staffing implications.
PUBLIC CONSULTATION
25
As it would be extremely difficult to disentangle views based on objective considerations from those based on self interest, it is not appropriate to consult the Banking Advisory Committee on the matter. This is in line with the approach adopted since 1981 when the existing licensing criteria were first considered.
PUBLIC REACTION
26
There is likely to be considerable public and press interest in the proposals, in view of the increased public concern about the supervision of banks. The banking sector is not expected to object to the proposed increase in the size requirements for both local and foreign bank applicants. The relaxation of the Hong Kong ownership criterion should be welcomed.
PUBLICITY
27
On 2 October 1992, a press release will be issued setting out and explaining the rationale behind the proposed changes. A Legislative Council Brief will also be issued.
ATTENDANCE
Mr D.A.C. NENDICK
Mr D.T.R. CARSE
Secretary for Monetary Affairs
Commissioner of Banking
22 September 1992 (B1/1C (92) XV)