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WEDNESDAY, JULY 3, 1974
REVIEW ON BANK LICENCE POLICY COMPLETED GOVERNOR IN COUNCIL TO BE CONSULTED
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A REVIED ON THE POLICY RELATING TO THE ISSUE OF BANK LICENCES HAS BEEN COMPLETED AID THE GOVERNOR IN COUNCIL WILL SOON BE CONSULTED ON THE FINDINGS, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON- CAVE, SAID TODAY.
IN REPLY TO A QUESTION BY THE HON. LEE QUO-VEI AT THE
LEGISLATIVE COUNCIL, HE SAID THE REPORT OF THE REVIEW WAS NOW IN HIS HANDS, BUT HE COULD HOT DISCLOSE ITS CONTENTS OR INDICATE HIS REACTIONS TO IT +FOR THE ISSUES ARE SUCH THAT THE GOVERNOR IN COUNCIL WILL HAVE TO BE CONSULTED.+
HE NOTED THAT IT BECAME APPARENT THAT THE OUTCOME OF THIS REVIEW HIGHT HAVE IMPLICATIONS FOR THE PROTECTION OF DEPOSITORS BILL AND FOR AT LEAST ONE OF THE AMENDEMTNS WHICH THE GOVERNMENT HAD IN MIND FOR THE BANKING ORDINANCE.
+1 HAVE DECIDED, THEREFORE, RATHER RELUCTANTLY, THAT THESE MEASURES WILL HAVE TO BE HELD UP IN VIEW OF THE PROBABLE NEED FOR A NUMBER OF INTERLOCKING MEASURES IN A SINGLE PACKAGE.+
MEANWHILE, MR. HADDON-CAVE SAID, THE COMMISSIONER OF BANKING HAD ENCOURAGED THE FINANCE COMPANIES TO FORM A VOLUNTARY ASSOCIATION COVERING AS WIDE A RANGE AS POSSIBLE OF BOTH LOCAL AND OVERSEAS COMPANIES.
+THE COMMISSIONER'S INITIATIVE WAS DESIGNED PURELY TO BRING REPRESENATIVES OF THE COMPANIES TOGETHER AND TO START THEN TALKING,+ HE EXPLAINED.
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HE PERSONALLY WELCOMED THE EXISTENCE OF AN ASSOCIATION OF FINANCE COMPANIES WHICH COULD SET A CODE OF CONDUCT FOR ITS MEMBERS AND COULD REPRESENT THEIR VIEWS TO GOVERNMENT.
+BUT WE HAVE NOT ATTEMPTED TO IMPOSE OUR IDEAS ON THE FORM THE ASSOCIATION SHOULD TAKE AND THE MANNER IN WHICH VIENS ARE FORMULATED FOR SUBMISSION TO THE GOVERNMENT = AND WOULD NOT WISH TO.+
THE FINANCIAL SECRETARY NOTED THAT THE GOVERNMENT IS +NOT QUITE+ YET IN A POSITION TO MAKE A STATEMENT AS TO ITS INTENTIONS CONCERNING THE REGULATING OF DEPOSIT-TAKING AND NON-DEPOSIT-TAKING FINANCE COMPANIES AND A POSSIBLE CHANGE IN BANK LICENSING POLICY.
HOWEVER, HE TOOK THE OPPORTUNITY TO BRING MEMBERS OF THE COUNCIL UP TO DATE WITH THE DISCUSSIONS THAT HAVE BEEN TAKING PLACE IN VARIOUS FORUMS, INCLUDING THE BANKING ADVISORY COMMITTEE, AND BILATERALLY WITH VARIOUS MEMBERS OF THE FINANCIAL COMMUNITY.
THESE DISCUSSIONS HAVE RELATED TO THREE MAIN AREAS OF CONCERN. THE FIRST IS THE PROTECTION OF SMALLER DEPOSITORS.
+ IN THE BUDGET SPEECH I INDICATED THAT HY PREFERRED APPROACH WAS TO SPECIFY A MINIMUM SIZE OF DEPOSIT WHICH FINANCE COMPANIES COULD ACCEPT FROM THE PUBLIC, THIS BEING LINKED WITH THE VOLUNTARY FORMATION OF ONE OR MORE ASSOCIATIONS OF FINANCE COMPANIES WHICH WOULD SET RULES AND STANDARDS OF CONDUCT FOR THEIR MEMBERS,
/+BUT I ..