FRIDAY, OCTOBER 13, 1978
DEPOSIT-TAKING COMPANIES ORDINANCE TO BE AMENDED
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A BILL TO INTRODUCE A SYSTEM OF PRUDENTIAL SUPERVISION OF REGISTERED DEPOSIT-TAKING COMPANIES IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY).
THE BILL, KNOWN AS DEPOSIT-TAKING COMPANIES (AMENDMENT) BILL, IMPLEMENTS THE DECISIONS ANNOUNCED BY THE FINANCIAL SECRETARY IN THE LEGISLATIVE COUNCIL ON MARCH 15, 1978.
THE SUPERVISION WOULD BE SOMEWHAT SIMILAR TO THAT PRESENTLY APPLIED TO BANKS LICENSED UNDER THE BANKING ORDINANCE.
THE BILL, WHICH AMENDS THE DEPOSIT-TAK ING COMPANIES ORDINANCE OF 1976, WOULD INTRODUCE :
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DETAILED MONTHLY RETURNS BY DEPOSIT-TAKING COMPANIES AND ANY OTHER MORE DETAILED INFORMATION THAT MAY BE REQUIRED= INSPECTION OF THE BOOKS OF DEPOSIT-TAKING COMPANIES= AND
THE REQUIREMENT THAT DEPOSIT-TAKING COMPANIES HOLD A MINIMUM PROPORTION OF LIQUID ASSETS, IN RELATION TO THEIR DEPOSITS.
THE BILL ALSO PROVIDES FOR THE COMMISSIONER OF BANKING TO HOLD THE NEW POST OF COMMISSIONER OF DEPOSIT-TAKING COMPANIES, AND TO BE RESPONSIBLE FOR THE NEW SYSTEM OF DETAILED SUPERVISION.
A GOVERNMENT SPOKESMAN SAID TODAY THAT THE LIQUIDITY REQUIREMENTS WOULD NOT BE DEFINED OR INTRODUCED UNTIL THERE HAD BEEN AN OPPORTUNITY TO EXAMINE THE MONTHLY RETURNS OVER A PERIOD OF TIME. HE SAID THAT DURING THIS PERIOD THE COMMISSIONER WOULD HAVE THE OPPORTUNITY TO EXAMINE THE APPLICATION OF MINIMUM LIQUIDITY REQUIREMENTS TO DEPOSIT- TAK ING COMPANIES AND ALSO TO REVIEW THE IR PRESENT-DAY SUITABILITY FOR LICENSED BANKS.
THE SPOKESMAN ALSO SAID THAT THE ANNUAL REGISTRATION FEE FOR DEPOSIT-TAKING COMPANIES WOULD GO UP FROM $10,000 TO $30,000 FROM THE DATE THE AMENDING LEGISLATION COMES INTO FORCE: THIS INCREASE WOULD BE NECESSARY TO COVER THE COSTS OF EXPANDED SUPERVISION.
THE BANKING (AMENDMENT) BILL, WHICH IS ALSO PUBLISHED IN TODAY'S GAZETTE, MAKES SOME MINOR TECHNICAL CHANGES IN THE BANKING ORDINANCE.
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