WEDNESDAY, OCTOBER 8, 1986
NEW BANK ING LAW PROVIDING MORE TEETH
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THE PASSING INTO LAW OF THE BANKING ORDINANCE IN MAY THIS YEAR HAS GREATLY STRENGTHENED THE ABILITY OF THE COMMISSIONER OF BANK ING TO PROVIDE EFFECTIVE SUPERVISION OF FINANCIAL INSTITUTIONS AND TO DETECT PROBLEMS OR IRREGULARITIES EARLIER THAN HAS BEEN POSSIBLE IN THE PAST, THE GOVERNOR, SIR EDWARD YOUDE SAID TODAY (WEDNESDAY).
THE BANKING SECTOR, HE SAID IN HIS ANNUAL ADDRESS, HAD GONE THROUGH DIFFICULT TIMES IN THE LAST FOUR YEARS DURING WHICH THE GOVERNMENT HAD HAD TO INTERVENE ON SEVERAL OCCASIONS TO PROTECT THE INTEGRITY OF THE FINANCIAL SYSTEM, WHICH WAS VITAL TO THE WELL-BEING OF THE ECONOMY.
MANY OF THE PROPLEMS THAT HAD ARISEN IN THE BANKING SECTOR
SIR EDWARD STEMMED FROM FRAUDULENT OR OTHER IMPROPER ACTIVITIES. SAID THAT THE ACTS OF A FEW HAD PLACED IN JEOPARDY THE LIVELIHOOD OF MANY,
IT WAS IMPOSSIBLE, HE ADDED, TO LEGISLATE FRAUD OUT OF EXISTENCE.
THE RESOURCES OF THE EXCHANGE FUND WERE USED IN SOME CASES, BUT THE MORE RECENT PROBLEMS HAVE BEEN DEALT WITH THROUGH TIMELY SUPERVISORY ACTION, WITH THE EXCHANGE FUND PROVIDING TEMPORARY LIQUIDITY WHILE LONG TERM SOLUTIONS WERE BEING WORKED OUT.
+ I HAVE NO DOUBT THAT THE BUSINESS COMMUNITY, BOTH IN HONG KONG AND INTERNATIONALLY, SUPPORT THE MEASURES WHICH THE GOVERNMENT HAS TAKEN, + SIR EDWARD STATED.
HE POINTED OUT THAT THE HANG LUNG AND OVERSEAS TRUST BANK S WERE RECOVERING STEADILY UNDER GOVERNMENT OWNERSHIP.
+WHEN THEY ARE ON A SOUND COMMERCIAL FOOTING THEY WILL BE SOLD TO THE PRIVATE SECTOR, AS WILL THE GOVERNMENT'S MAJORITY INTEREST IN THE HONGKONG INDUSTRIAL AND COMMERCIAL BANK,+ HE SA ID.
SIR EDWARD SAID THAT AN IMPORTANT NEW PIECE OF LEGISLATION WOULD BE PUBLISHED FOR PUBLIC CONSULTATION IN A FEW MONTHS' TIME.
+A BILL, WHICH FOLLOWS ON RECOMMENDATIONS BY THE STANDING COMMITTEE ON COMPANY LAW REFORM, WILL PROVIDE FOR A GREATER DEGREE OF DISCLOSURE OF THE TRUE OWNERSHIP OF PUBLIC COMPANIES AND BRING OUR LAWS, IN THIS REGARD, IN LINE WITH OTHER MAJOR FINANCIAL CENTRES, HE SAID.
HE ADDED THAT THE STANDING COMMITTEE AND THE SECURITIES COMMISSION WERE BEING CONSULTED ON WHETHER THE LAWS RELATING TO INSIDER DEALING OF SHARES SHOULD BE STRENGTHENED, FOLLOWING PUBLICATION OF THE INSIDER DEALING TRIBUNAL REPORT IN APRIL THIS YEAR.
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