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FRIDAY, JULY 7, 1989
BILL TO EFFECT CHANGES TO THREE-TIER DEPOSIT-TAKING SYSTEM
THE BANKING (AMENDMENT) (NO.2) BILL 1989, THE PRINCIPAL PURPOSE OF WHICH IS TO PUT INTO EFFECT A NUMBER OF CHANGES TO THE EXISTING THREE-TIER SYSTEM OF DEPOSIT-TAKING INSTITUTIONS, WAS GAZETTED TODAY (FRIDAY).
EXPLAINING THE OBJECTIVE OF THE BILL, A GOVERNMENT SPOKESMAN SAID THE CHANGES WERE AIMED AT IMPROVING HONG KONG'S BANKING SYSTEM TO REFLECT AND IN TURN FURTHER ITS INTERNATIONAL DEVELOPMENT.
"THE AMENDMENTS ARE ALSO INTENDED ΤΟ ENHANCE BANKING SUPERVISION IN THE LIGHT OF EXPERIENCE AND STRENGTHEN PROTECTION FOR DEPOSITORS," HE SAID.
THE SPOKESMAN POINTED OUT THAT CHANGES TO THE EXISTING THREE-TIER SYSTEM OF DEPOSIT-TAKING INSTITUTIONS, COMPRISING LICENSED BANKS, LICENSED DEPOSIT-TAKING COMPANIES AND REGISTERED DEPOSIT-TAKING COMPANIES, HAD BEEN ANNOUNCED ON MARCH 9 THIS YEAR.
"TO GIVE EFFECT TO THESE CHANGES, THE BILL REPLACES THE EXISTING CATEGORIES OF LICENSED DEPOSIT-TAKING COMPANY AND REGISTERED DEPOSIT-TAKING COMPANY IN THE BANKING ORDINANCE WITH THE NEW CATEGORIES OF RESTRICTED LICENCE BANK AND DEPOSIT-TAKING COMPANY.
"CLAUSE 39 AMENDS SECTION 97 OF THE BANKING ORDINANCE TO PROVIDE THAT RESTRICTED LICENCE BANKS MAY USE THE WORD 'BANK' OR ITS DERIVATIVES IN DESCRIBING THEIR BUSINESS, PROVIDED THIS IS QUALIFIED BY SUCH ADJECTIVES AS 'RESTRICTED LICENCE' 'MERCHANT', INVESTMENT' 'WHOLESALE', OR A TERM SPECIFIED BY THE COMMISSIONER OF BANKING NOTICE IN THE GAZETTE, HE SAID.
I
BY
"OVERSEAS INCORPORATED BANKS AUTHORISED AS RESTRICTED LICENCE BANKS AND OPERATING IN BRANCH FORM WOULD BE ALLOWED TO USE THEIR CORPORATE NAMES WHICH INCLUDE THE WORD 'BANK' PROVIDED THESE ARE QUALIFIED IN EQUAL PROMINENCE BY THE WORDS 'RESTRICTED LICENCE NEXT TO THEM," HE ADDED.
BANK'
CAPITAL
ON CAPITAL REQUIREMENT, THE SPOKESMAN SAID THE MINIMUM REQUIRMENT FOR THE REGISTRATION OF NEW DEPOSIT-TAKING COMPANIES HAD ALREADY BEEN INCREASED FROM $10 MILLION TO $25 MILLION AS FROM MARCH 10 THIS YEAR.
FOR
"CLAUSE 12 WOULD INCREASE THE PRESENT PAID-UP CAPITAL OF $75
COMPANIES MILLION FOR LICENSED DEPOSIT-TAKING
$100 MILLION RESTRICTED LICENCE BANKS.
ΤΟ
"EXISTING LICENSED DEPOSIT-TAKING COMPANIES, WHICH WOULD BE DEEMED TO BE RESTRICTED LICENCE BANKS, WOULD BE PROVIDED WITH A PERIOD OF TWO YEARS FROM MARCH 10 THIS YEAR TO
COMPLY WITH
GRACE THE NEW
STANDARD.
/"CLAUSE 7
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