1992-05-12
00:04 G.1.5
GIS 22 -
P.02
MONDAY, MAY 11, 1992
COMMISSIONER OF BANKING'S ANNUAL REPORT 1991
THE COMMISSIONER OF BANKING, MR DAVID CARSE, FIRST ANNUAL REPORT TO THE GOVERNOR IN COUNCIL THAT EXCEPTIONALLY PROFITABLE YEAR FOR THE BANKING INDUSTRY.
NOTED IN HIS 1991 WAS AN
THE REPORT, WHICH WAS PUBLISHED TODAY (MONDAY), REVIEWS THE PERFORMANCE OF THE BANKING INDUSTRY AS WELL AS SUPERVISORY DEVELOPMENTS IN 1991.
SPEAKING AT A PRESS CONFERENCE, MR CARSE SAID: "FAVOURABLE ECONOMIC CONDITIONS IN HONG KONG AND A WIDENING OF DOMESTIC MARGINS HAVE HELPED TO BOOST THE PROFIT GROWTH OF AUTHORISED INSTITUTIONS.
"A NUMBER OF INSTITUTIONS WERE ABLE ΤΟ PUBLISH PROFIT INCREASES OF 30% OR MORE IN 1991".
i?? CARSE SAID THE
THE HONG KONG FINANCIAL SYSTEM HAD AGAIN DEMONSTRATED IN 1991 ITS ROBUSTNESS AND RESILIENCE BY BEING ABLE TO ABSORB THE EFFECTS OF THE FAILURE OF A SIGNIFICANT RETAIL BANK, BANK OF CREDIT AND COMMERCE HONG KONG (BCCHK) AND THE TEMPORARY LOSS OF CONFIDENCE BY SOME DEPOSITORS IN SEVERAL OTHER BANKS IN THE AFTERMATH OF BCCHK'S CLOSURE.
HE SAID: "THE CLOSURE OF BCCHK SHOULD NOT BE ALLOWED TO DETRACT FROM THE SUPERVISORY FRAMEWORK IN HONG KONG WHICH COMPARES WELL WITH THOSE IN OTHER MAJOR FINANCIAL CENTRES".
HE ADDED THAT THE ORIGINS OF THE PROBLEMS OF THE BCC GROUP LAY OUTSIDE HONG KONG.
THE COMMISSIONER OF BANKING HAS TAKEN TO STRENGTHEN THE SUPERVISORY FRAMEWORK.
FURTHER STEPS
NEW LEGISLATION WAS ENACTED IN 1991 WHICH STRENGTHENS THE PROVISION OF THE BANKING ORDINANCE PARTICULARLY RELATING TO CHANGES OF CONTROL OF AUTHORISED INSTITUTIONS AND ΤΟ LIMITATIONS ON CREDIT EXPOSURES.
FURTHER LEGISLATION IS PROPOSED WHICH WILL PERMIT EXTERNAL AUDITORS TO PLAY AN INCREASED ROLE IN THE REVIEW OF AUTHORISED INSTITUTIONS' INTERNAL CONTROLS.
MR CARSE SAID THE BASLE COMMITTEE ON BANKING SUPERVISION WAS EXAMINING THE IMPLICATIONS OF THE BCC INCIDENT FOR THE SUPERVISION CF INTERNATIONAL BANKS.
HE INDICATED THAT HIS OFFICE WOULD TAKE ACCOUNT OF ANT RECOMMENDATIONS WHICH THE BASLE COMMITTEE MADE.
THE CAPITAL ADEQUACY OF THE BANKING SYSTEM AS A WHOLE WELL ABOVE THE LEVELS REQUIRED UNDER THE BASLE ACCORD.
"ALL LOCALLY INCORPORATED INSTITUTIONS (EXCEPT BCCHK) MINIMUM RATIOS SET FOR THEM DURING 1991, MR CARSE NOTED.
THE REPORT NOTED THAT THE NUMBER OF AUTHORISED DROPPED IN 1991 FROM 405 TO 375.
REMAINED
MET THE
INSTITUTIONS