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THURSDAY, OCTOBER 9, 1986
FOLLOWING THE CONCLUSION OF THE AGREEMENT TODAY FOR THE PURCHASE OF THE BANK BY FIRST PACIFIC, THE COMMISSIONER, AFTER CONSULTING THE FINANCIAL SECRETARY AND THE BOARD OF DIRECTORS OF THE BANK, HAS DECIDED THAT FIRST PACIFIC SHOULD COMMENCE THE IR MANAGEMENT OF THE BANK NOW UNDER THE OVERALL CONTROL OF THE COMMISSIONER.
THE COMMISSIONER WILL CONTINUE TO BE IN CONTROL OF THE BANK UNTIL THE EFFECTIVE DATE OF THE PURCHASE BY FIRST PACIFIC, IN SEVERAL MONTHS' TIME.
DURING THIS PERIOD THE EXCHANGE FUND LINE OF CREDIT WILL REMAIN IN PLACE, BUT DRAWINGS ON IT WILL BE AT COMMERCIAL INTEREST RATES, RATHER THAN THE PENAL RATES CHARGED UP TILL NOW. THERE ARE AGREED ARRANGEMENTS FOR THE REPAYMENT IN FULL, OVER A PERIOD AFTER THE EFFECTIVE DATE OF ANY MONEY DRAWN ON THE EXCHANGE FUND.
SIZE CRITERION FOR FOREIGN BANKS REVISED
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THE MONETARY AFFAIRS BRANCH ANNOUNCED TODAY (THURSDAY) THAT THE SIZE CRITERION FOR FOREIGN BANKS APPLYING FOR BANKING LICENCES HAS BEEN INCREASED FROM U.S.$12 BILLION TO U.S.$14 BILLION.
A GOVERNMENT SPOKESMAN EXPLAINED THAT APPLICATIONS FOR BANKING LICENCES ARE JUDGED AGAINST CERTAIN SPECIFIED CRITERIA, ONE OF WHICH IS SIZE AS MEASURED BY TOTAL ASSETS (LESS CONTRA ITEMS) FOR FOREIGN APPLICANTS, AND TOTAL ASSETS (LESS CONTRA ITEMS) AND DEPOSITS FROM THE PUBLIC FOR LOCAL APPLICANTS. THE SIZE CRITERIA FOR BOTH FOREIGN AND LOCAL APPLICANTS HAVE BEEN SUBJECT TO REVIEW ON AN ANNUAL BASIS SINCE 1981.
THE SPOKESMAN SAID THAT THE SIZE CRITERION FOR FOREIGN BANKS HAD BEEN REVISED DUE TO THE SUBSTANTIAL INCREASE THIS YEAR IN THE NUMBER OF BANKS EXCEEDING THE U.S.$12 BILLION THRESHOLD, AND BECAUSE THE THRESHOLD HAD REMAINED UNCHANGED SINCE 1982. THE REVISED SIZE CRITERION OF U.S.$14 BILLION APPLIES TO ALL APPLICATIONS RECEIVED ON OR AFTER OCTOBER 7, 1986.
THE SIZE CRITERIA FOR LOCAL APPLICANTS, HOWEVER, HAVE NOT BEEN INCREASED DUE TO A DEARTH OF ELIGIBLE APPLICANTS. THEY REMAIN AT HK$2 500 MILLION FOR TOTAL ASSETS (LESS CONRA ITEMS) AND AT HK$1 750 MILLION FOR DEPOSITS FROM THE PUBLIC,
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