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WEDNESDAY, FEBRUARY 5, 1986
NEW BANKING BILL EXPECTED IN MARCH
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SUBJECT TO FINAL DRAFTING ISSUES AND THE APPROVAL OF THE EXECUTIVE COUNCIL. A NEW BANKING BILL WAS EXPECTED TO BE PRESENTED IN THE LEGISLATIVE COUNCIL IN THE FIRST HALF OF MARCH, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE SAID TODAY.
IN A WRITTEN REPLY TO A QUESTION ON +TROUBLED BANKS+ BY THE HON HUI YIN-FAT, SIR JOHN SAID HE INTENDED TO TOUCH ON THE NEW BANKING ORDINANCE IN PARTICULAR IN THE COMING BUDGET SPEECH, AND THEREFORE WOULD GIVE RATHER GENERALISED REPLIES.
SIR JOHN ALSO SAID THAT HE HAD NO PRESENT INTENTION OF SEEKING TO REVOKE THE LICENCE OF ANY BANK.
REVOKING THE LICENCE OF A BANK WAS NOT THE BEST WAY OF HELPING DEPOSITORS OR OF MAINTAINING INTEGRITY OF THE SYSTEM, HE SAID.
+WE ARE COMMITTED TO PRESERVING THE STABILITY AND PROSPERITY OF HONG KONG. THE NEED IS FOR THE BANKING COMMISSION TO FIND OUT WHEN TROUBLES ARE COMING AS EARLY AS POSSIBLE SO THAT TOGETHER WITH THE MANAGEMENT OF THE BANK THE COMMISSIONER CAN FIND A BETTER COURSE,+ SIR JOHN SAID.
POINTING OUT THAT THE GOVERNMENT DID HAVE LONG TERM METHOD TO IMPROVE THE BANKING SITUATION, HE SAID THE NEW BANKING BILL REPRESENTED THE OUTCOME OF THE TWO YEARS WORK TO IMPROVE THE SITUATION.
HOWEVER, THERE WAS NO WAY THAT GOVERNMENT COULD PREVENT FRAUD AT THE TOP NÓR WAS THERE REASON TO SUPPOSE THAT SHAREHOLDERS IN PUBLICLY QUOTED BANKS SHOULD EXPECT ANY MORE CARE FOR THEIR POSITION THAN SHAREHOLDERS IN ANY OTHER COMPANIES IN HONG KONG.
+THEY ENJOY THE PROTECTION OF THE COMPANIES ORDINANCE. A BOARD WHICH IS ELECTED BY SHAREHOLDERS IS EITHER INCOMPETENT OR FRAUDULENT, THE SHAREHOLDERS ARE AT RISK, SIR JOHN SAID.
IF
SIR JOHN NOTED THAT THE NEED FOR MAJOR NEW LEGISLATION HAD BEEN SAID BY THE GOVERNMENT MANY TIMES AND THE NEW POLICIES TO BE ADOPTED HAD BEEN ACCEPTED BY ALL CONCERNED.
HE DID NOT REGARD AS HELPFUL ANY VIEW THAT SUGGESTED THAT, MEANWHILE, AN UNSTABLE SITUATION EXISTED.
+ IN FACT IF ONE CONSIDERS THE TURMOIL OF THE PAST FOUR YEARS IT IS REMARKABLE HOW RESPONSIBLY HONEST BANK MANAGERS HAVE DIRECTED THEIR AFFAIRS,+ HE SAID.
*DISHONESTY IS ANOTHER QUESTION, BUT NO LEGISLATION IN ITSELF WILL CURE THAT, HE ADDED.
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