WEDNESDAY, MAY 28, 1986
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BILL TO STRENGTHEN BANKING SUPERVISION WELCOMED
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THE BANKING BILL 1986 WAS WELCOMED BY THE HON PETER POON TODAY (WEDNESDAY) FOR CONSOLIDATING THE LAWS REGULATING BOTH BANKS AND DEPOSIT-TAKING COMPANIES AND INCORPORATING VERY SUBSTANTIAL IMPROVEMENTS TO THE PRUDENTIAL SUPERVISION OF THESE INSTITUTIONS.
HE WAS SPEAKING DURING THE RESUMED DEBATE OF THE BILL IN THE LEGISLATIVE COUNCIL.
REFERRING TO SECTION 61 OF THE BILL WHICH HE CONSIDERED PARTICULARLY HELPFUL TO AUDITORS, MR POON SAID THE PROVISION PROVIDED FOR TRIPARTITE MEETING OF THE DIRECTORS, THE AUDITORS AND THE COMMISSIONER OF BANKING TO DISCUSS THE AFFAIRS OF A BANK,
+HITHERTO, AUDITORS OF BANKS ARE OFTEN IN A DILEMMA WHEN THEY FIND IT NECESSARY OR APPROPRIATE TO DISCUSS CLIENTS' AFFAIRS WITH THE COMMISSIONER OF BANKING BUT ARE REFRAINED FROM DOING SO BECAUSE OF THE QUESTION OF CONFIDENTIALITY.
+THE NEW PROVISION WILL FACILITATE USEFUL EXCHANGE OF VIEWS WHICH WILL ENABLE PROBLEMS TO BE IDENTIFIED AT AN EARLY STAGE AND POSSIBLY ENABLE THEM TO BE SOLVED OR DEALT WITH AS THE OCCASION ARISES, AND NOT UNTIL THE AUDIT REPORT HAS COME OUT,+ MR POON SAID.
HE SAID HE WAS SATISFIED THAT WITH THE VARIOUS AMENDMENTS PROPOSED, IT WOULD GIVE THE COMMISSIONER OF BANKING ADEQUATE BUT NOT EXCESSIVE POWERS.
+1 AM ALSO CONVINCED THAT THE BILL, IF PASSED, WILL GREATLY STRENGTHEN THE EXISTING EXTENT AND QUALITY OF BANKING SUPERVISION, + HE ADDED.
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