FRIDAY, JULY 7, 1989
2
MINIMUM
CAPITAL REFLECT
"CLAUSE 7 ALSO AMENDS SECTION 18 TO RAISE THE LEVEL FOR LICENSED BANKS FROM $100 MILLION TO $150 MILLION TO
LICENSED BANKS, WHICH THE HIGHER CAPITAL REQUIREMENT APPROPRIATE TO
FROM MARCH 10 THIS WOULD ALSO BE GIVEN A GRACE PERIOD OF TWO YEARS YEAR TO MEET THE NEW STANDARD,
HE SAID.
UNDER THE EXISTING
DEPOSIT-TAKING LICENCE
MAY
LEGISLATION,
ONLY BE
AN
FOR APPLICATION
REGISTERED BY A MADR
A
DEPOSIT-TAKING COMPANY.
"THIS REQUIREMENT WILL
BE
REPEALED IN
ACCORDANCE
WITH THE
APPROVED CHANGES," HE SAID.
THE INFORMATION GATHERING POWER OF THE COMMISSIONER OF WILL BE EXTENDED UNDER PROPOSED LEGISLATION.
AUTHORISED
PRESENT
UNDERSTANDING PROPER
THE SPOKESMAN POINTED OUT THAT THE LAW AT COMMISSIONER TO REQUIRE INFORMATION FROM SUCH INFORMATION IS "NECESSARY FOR THE FINANCIAL POSITION OF THE INSTITUTION".
тоо CONSIDERED
DISCHARGE
BANKING
ALLOWS INSTITUTIONS
THE
OF
IF THE
:
RESTRICTIVE
SINCE POWER IN THIS RESPONSIBILITIES
THE
WAS HE NOTED THAT IT COMMISSIONER WOULD NEED TO HAVE RELATIVELY UNFETTERED
HIS STATUTORY IF HE WERE
RESPECT EFFECTIVELY.
то
"THE BILL THEREFORE EMPOWERS THE COMMISSIONER
то ITS SUBSIDIARIES AUTHORISED INSTITUTION OR INFORMATION THAT MAY REASONABLY BE REQUIRED FOR THE FUNCTIONS UNDER THE ORDINANCE," HE SAID.
ΤΟ REQUIRE ANY
ΤΟ SUBMIT
HIM EXERCISE OF HIS
AN ANOMALY IN FROM LENDING EVEN
ANOTHER PROVISION IN THE BILL SEEKS TO REMOVE THE PRESENT LEGISLATION WHICH IN EFFECT PREVENTS A BANK MORE THAN 25 PER CENT OF ITS OWN CAPITAL TO ITS OWN SUBSIDIARIES
THE THOUGH THESE
SUPERVISION.
ARE
SUBJECT
TO
COMMISSIONER'S
CONSOLIDATED
THE PRESENT THE SPOKESMAN SAID: "THIS SITUATION AROSE BECAUSE
EXPOSURE OF AN AUTHORISED LEGISLATION PROVIDES THAT THE FINANCIAL
ARE SUBSIDIARIES OF THE INSTITUTION TO TWO OR MORE COMPANIES WHICH
25 PER SAME HOLDING COMPANY SHALL NOT EXCEED AN AMOUNT EQUIVALENT TO CENT OF THE PAID-UP CAPITAL AND RESERVES OF THE INSTITUTION.
||
THAT AN EXEMPTION INSTITUTION
TO REMOVE THIS ANOMALY, THE BILL PROVIDES MAY BE GRANTED TO AN AUTHORISED INSTITUTION WHERE THE ITSELF THE CONTROLLER OF THE SUBSIDIARIES CONCERNED.
HOWEVER, SUCH AN
SHALL EXEMPTION
BE
SUBJECT APPROVAL BY THE COMMISSIONER AND TO SUCH CONDITIONS AS PROPER TO ATTACH, THE SPOKESMAN CONTINUED.
IS
TO THE HE MAY
PRIOR THINK
/ANOTHER MAJOR
: