TUESDAY, APRIL 1, 1986
SUPPORT FOR BANKS AND EXCHANGE FUND
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THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, ISSUED THE FOLLOWING STATEMENT TODAY:
+ I WILL RESPOND IN FULL IN THE LEGISLATIVE COUNCIL NEXT WEEK TO THE POINTS MADE IN THE BUDGET DEBATE ABOUT VARIOUS BANKING AND EXCHANGE FUND MATTERS. IN LIGHT OF SOME COMMENTS REPORTED IN THE PRESS DURING THE HOLIDAYS I WANT TO MAKE FOUR POINTS IMMEDIATELY TO REMOVE THE CONFUSION WHICH EXISTS IN CERTAIN QUARTERS.
(1)
UNDERLYING STRATEGY OF MINIMUM RISK TO SAFEGUARD ECONOMY
AS FINANCIAL SECRETARY, 1 HAVE BEEN FACED WITH A NUMBER OF PROBLEMS IN THE BANKING SECTOR SINCE END OF 1982. EACH OF THESE PROBLEMS HAS BEEN TACKLED AND TACKLED SUCCESSFULLY - BY THE MEANS MOST APPROPRIATE TO THE PARTICULAR PROBLEM,
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OUR UNDERLYING STRATEGY THROUGHOUT HAS BEEN TO MAINTAIN THE STABILITY OF HONG KONG AND ITS FINANCIAL SYSTEM ON WHICH OUR TRADE, INDUSTRY AND EMPLOYMENT DEPEND. WE HAVE DELIBERATELY FOLLOWED A POLICY OF RUNNING THE MINIMUM RISK IN THE SOLUTION TO EACH DIFFICULTY.
OUR PARTICULAR AIM HAS BEEN THE PROTECTION OF THE DEPOSITS OF THE CITIZENS OF HONG KONG AND THE CONFIDENCE OF BANKERS HERE AND INTERNATIONALLY IN OUR BANKING SYSTEM. WE HAVE TO DEAL WITH THE FIRES AS THEY OCCUR AND WE USE THE APPROPRIATE MEANS TO PUT THEM OUT AT MINIMUM POSSIBLE COST BEFORE THE FIRES CAN SPREAD.
OUR PRIME CONCERN IS NOT WITH SHAREHOLDERS AND MANAGEMENT BUT RATHER IN MAKING HONG KONG A PLACE WHERE DEPOSITORS LARGE AND SMALL, DOMESTIC AND INTERNATIONAL, CAN INVEST WITH CONFIDENCE.
IMMEDIATE ACTION REQUIRES IMMEDIATE POWERS
(2)
FOR THIS REASON POWERS MUST BE IN THE HANDS OF THE FINANCIAL SECRETARY AND THE BANKING COMMISSIONER, IF IMMEDIATE ACTION IS NECESSARY, POWERS MUST BE AVAILABLE TO BE USED IMMEDIATELY. THAT IS WHY THE EXCHANGE FUND ORDINANCE GIVES CLEAR POWERS TO BE USED WHEN THE FINANCIAL SECRETARY CONSIDERS THEIR USE APPROPRIATE. EQUALLY, THE BANKING ORDINANCE GIVES THE NECESSARY IMMEDIATE POWERS TO THE BANKING COMMISSIONER.
BANKING SECRECY WHICH IS REQUIRED IN EVERY INTERNATIONAL CENTRE AND SHARE PRICE SENSITIVITY OF INFORMATION MAKE OPEN DEBATE IMPOSSIBLE. BUT IF THIS WAS NOT THE CASE, THERE REMAINS THE PRACTICAL POINT THAT THE EXERCISE OF THE POWERS CANNOT AWAIT A POLICY DEBATE.
/THE FINANCIAL