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WEDNESDAY, MARCH 25, 1981
+BREATHING SPACE+ IN DTC REGISTRATION
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THE DEPOSIT-TAKING COMPANIES (AMENDMENT) BILL WHICH CREATES A BREATHING SPACE IN THE REGISTRATION OF DEPOSIT-TAKING COMPANIES, WAS INTRODUCED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
SPEAKING ON THE SECOND READING OF THE BILL, THE HON THE FINANCIAL SECRETARY SIR PHILIP HADDON-CAVE SAID THE RECENT SHARP GROWTH IN THE NUMBER OF REGISTERED DEPOSIT-TAKING COMPANIES PROMPTED AN EXAMINATION OF WHETHER THERE IS A NEED FOR SOME FORM OF QUANTITATIVE CONTROL OVER REGISTRATION,
THE NUMBER OF REGISTERED DEPOS IT-TAK ING COMPANIES HAD RISEN PARTICULARLY SHARPLY IN THE LAST TWO YEARS, HE NOTED, FROM 241 AT THE END OF 1978, TO 269 AT THE END OF 1979, TO 302 AT THE END OF 1980, AND TO 330 AS AT MARCH 23 THIS YEAR.
IT WAS PROPOSED, SIR PHILIP SAID TO LIMIT TEMPORARILY THE REGISTRATION OF NEW APPLICATIONS IN ORDER TO ALLOW TIME FOR THE
IMPACT ON EXISTING DEPOSIT-TAKING COMPANIES OF THE VARIOUS LEGISLATIVE AMENDMENTS, IF APPROVED, TO BE OBSERVED AND, EQUALLY IMPORTANT, TO ALLOW TIME FOR THE COMMISSIONER OF DEPOSIT-TAK ING COMPANIES TO SUPERVISE THE IMPLEMENTATION OF THE NEW PROVISIONS OF THE ORDINANCE.
THE ARGUMENTS IN FAVOUR OF QUANTITATIVE CONTROL SUGGESTED THAT, DURING THE BREATHING SPACE, THE ONLY APPLICANTS WHICH SHOULD BE REGISTERED AS DEPOSIT-TAK ING COMPANIES SHOULD BE COMPANIES WHICH ARE SUBSIDIARIES OF RECOGNISED BANKS.
ACCORDINGLY, HE SAID, IT WAS INTENDED TO EMPOWER THE COMMISSIONER ON THE DATE OF THE COMMENCEMENT OF THE AMENDMENT TO THE ORDINANCE TO REFUSE TO REGISTER ANY COMPANY UNLESS HE WAS SATISFIED THAT:
(A) MORE THAN 50% OF ITS VOTING CAPITAL IS HELD
BY A BANK WHICH IS RECOGNISED AS SUCH IN THE COUNTRY OR PLACE IN WHICH IT IS INCORPORATED- AND
(B) SUCH BANK IS ADEQUATELY SUPERVISED BY THE
PRUDENTIAL SUPERVISORY AUTHORITIES OF THAT COUNTRY OR PLACE.+
NEED TO IMPROVE QUALITY OF LIFE
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UNOFFICIAL LEGISLATIVE COUNCILLOR, THE HON R.H. LOBO, HAS URGED THE GOVERNMENT TO IMPROVE THE QUALITY OF LIFE OF HONG KONG PEOPLE - +OUR ONLY TANGIBLE ASSET+.
*WE HAVE TO DO SOMETHING URGENTLY TO CREATE A BETTER BALANCE BETWEEN TREMENDOUS PHYSICAL DEVELOPMENT AND THE DETERIORATING QUALITY OF LIFE, HE SAID IN THE RESUMED BUDGET DEBATE.