WEDNESDAY, MAY 28, 1986
10
'SOUND BANKS DEPEND ON GOOD BANKERS'
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THE QUALITY OF BANKING INSTITUTIONS DEPENDS ON THE QUALITY OF BANKERS, THE HON DAVID K.P. LI SAID TODAY (WEDNESDAY).
THE BANKING BILL 1986, HE SAID DURING THE RESUMED DEBATE ON THE BILL, WAS A VERY IMPORTANT DEVELOPMENT FOR THE BANKING AND FINANCIAL COMMUNITY.
HOWEVER, HE CAUTIONED THAT NO AMOUNT OF LEGISLATION COULD PREVENT THE UNSCRUPULOUS, THE IMPRUDENT AND THE INEPT FROM LEADING HONG KONG FINANCIAL INSTITUTIONS TO DISASTER.
MR LI NOTED THAT IN GENERAL TERMS, THE BILL HAD RECEIVED WIDESPREAD SUPPORT WITHIN THE BANKING AND FINANCIAL FRATERNITY AND COMMENDED THE FINANCIAL SECRETARY, THE SECRETARY FOR MONETARY AFFAIRS AND THE COMMISSIONER OF BANKING FOR THEIR EFFORTS IN MAKING THE BILL POSSIBLE.
HE POINTED OUT THAT THE TIME HAD COME FOR THE BILL TO BE PUT TO THE ACID TEST IN THE BANKING AND FINANCIAL SECTOR IT WAS MEANT TO GUIDE AND TO GUARD.
+I BELIEVE THAT OUR INDUSTRY IS CAUTIOUSLY OPTIMISTIC FOR THE FUTURE, ALTHOUGH WE DO, OF COURSE, RESERVE THE RIGHT TO SEE IF THE BILL WILL WORK AS WELL IN PRACTICE AS ON PAPER, AND WHETHER IN ADDITION TO PROVIDING THE PROMISED ANTIDOTĖS, THERE MIGHT BE SIDE-EFFECTS WE DID NOT ANTICIPATE, HE SAID.
MR LI PROPOSED THAT THE BILL BE INTRODUCED WITH THE UTMOST CARE AND WITH A PLEDGE TO THE COMMUNITY OF REGULAR AND FAIR REVIEW AND A LARGE MEASURE OF FLEXIBILITY IN ADAPTING THE PROVISIONS OF THE BILL TO A CONSTANTLY CHANGING ENVIRONMENT.
HE ALSO SUGGESTED THAT FURTHER CONSIDERATION SHOULD BE GIVEN TO PERMITTING AGGRIEVED INSTITUTIONS THE RIGHT OF APPEAL TO AN INDEPENDENT COMMITTEE, CONSISTING OF A JUDGE AND MEMBERS OF THE LEGISLATIVE COUNCIL WHO WERE NOT INVOLVED IN THE FINANCIAL AND BANKING SECTOR.
MR LI SAID THAT HONG KONG MUST SUSTAIN AND ENHANCE ITS POSITION AS A VITAL INTERNATIONAL CENTRE FOR FINANCE AND INVESTMENT AND IN SO DOING, MAINTAIN A BALANCE BETWEEN PRUDENT REGULATION AND THE FREE ENTERPRISE POLICIES THAT HAD HISTORICALLY SERVED HONG KONG SO WELL.
+I WOULD REITERATE THAT ULTIMATELY. SOUND BANKS DEPEND MORE ON GOOD BANKERS THAN ON GOOD BANKING LAWS,+ HE SAID.
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