13
F
JUNE 7, 1985
+ IN OTHER WORDS, WE DO NOT KNOW AT THIS POINT TO WHAT EXTENT WE ARE COMMITTING PUBLIC FUNDS IN ORDER TO FACILITATE THIS ACQUISITION, SHE DECLARED.
RECALLING THE HANG LUNG BANK ACQUISITION, MRS CHOW ASKED WHAT HAD THE GOVERNMENT DONE TO PREVENT THIS RECURRENCE, WHAT WOULD THE GOVERNMENT DO TO PREVENT ANOTHER OR OTHER RECURRENCES IN THE FUTURE?
SUPPORTING THE BILL +RELUCTANTLY+, MRS CHOW SAID THE GOVERNMENT MUST GIVE ITS ASSURANCE AND FIRM COMMITMENT THAT IT WOULD DO ITS UTMOST TO PREVENT FURTHER RECURRENCE OF TODAY'S SCENAR 10.
THE HON RITA FAN ALSO RECALLED THE ACQUISITION OF THE HANG LUNG BANK 20 MONTHS AGO AND SAID ONE WOULD HAVE EXPECTED THAT A LESSON HAD BEEN LEARNT AND APPROPRIATE STEPS TAKEN TO PREVENT SIMILAR RECURRENCE IN FUTURE.
+TODAY, WE ARE +REGRETTABLY, THIS IS NOT TO BE, SHE SAID. ONCE AGAIN FACED WITH THE DILEMMA OF CHOOSING THE LESSER OF THE EVILS.+
SHE SAID SHE COULD NOT ENVISAGE LENDING HER SUPPORT TO ANOTHER ACQUISITION OF THIS NATURE IN THE FUTURE BECAUSE SUCH A MOVE COULD EASILY TURN INTO AN OPEN-ENDED COMMITMENT BY THE TAXPAYER.
THE HON KIM CHAM DESCRIBED THE ACQUISITION AS A +NEEDED MEASURE+,
REFERRING TO RECENT EFFORTS TO IMPROVE BANKING SUPERVISION, MR CHAM PRAISED THE COMMISSIONER OF BANKING, MR ROBERT FELL, AND SAID HE WAS CONFIDENT OF HIS ABILITY TO BRING ABOUT SOME IMPROVEMENTS.
HE QUESTIONED WHY THE EXCHANGE FUND SHOULD BE REQUIRED TO BEAR SUCH MISHAPS ALONE AND SAID HE WAS OF THE VIEW THAT INDUSTRY, TOGETHER WITH THE BANKING COMMISSIONER'S OFFICE, SHOULD BE ASKED TO EXAMINE THE VIABILITY OF OTHER METHODS SUCH AS DEPOSIT INSURANCE SCHEMES TO RESTORE DEPOSITORS' CONFIDENCE AND TO SHARE THE FINANCIAL EFFECTS OF SUCH GRAVE CONSEQUENCES.
THE HON CARL TONG SAID HE SUPPORTED THE BILL BECAUSE HE BELIEVED IT IMPERATIVE THAT PROMPT ACTION BE TAKEN TO PREVENT ANY DAMAGE TO HONG KONG'S REPUTATION AS A LEADING FINANCIAL CENTRE AND MORE IMPORTANTLY TO PROTECT THE INTERESTS OF ALL DEPOSITORS.
HE ASKED, HOWEVER, HOW IT WAS THAT AFTER CLOSE TO TWO MONTHS OF EXAMINATIONS BY OUR BANK EXAMINERS ACTION WAS APPARENTLY ONLY TAKEN AT THE 11TH HOUR WHEN THE CHAIRMAN OF THE BANK WROTE TO ADVISE THE AUTHORITIES OF THE BANK'S INSOLVENCY?
/REFERRING TO