THURSDAY, AUGUST 24, 1989
3
THE BILLS WILL BE ISSUED IN ORDER TO PROVIDE
A FLEXIBLE, LOW CONDUCTING MONEY MARKET OPERATIONS. TO THE DEVELOPMENT OF
HONG KONG
RISK AND COST EFFECTIVE WAY OF THEY SHOULD ALSO BE HELPFUL DOLLAR PAPER MARKET.
THE
UNLIKE TREASURY BILLS ELSEWHERE, THE PROCEEDS WILL NOT
AND
NOT BE COULD THE ACCOUNT
GENERAL REVENUE
OF THE
FINANCING PUBLIC EXPENDITURE.
BB FOR USED FOR
ΤΟ
MARKETS KONG CAPITAL IN HIS SPEECH TO THE HONG
ASSOCIATION, NEED TO BB APPLIED SIR PIERS SAID CAPITAL ADEQUACY TESTS WOULD
RISKS DISPROPORTIONATE ENSURE THAT RECOGNISED DEALERS ARE NOT TAKING TO THEIR RESOURCES.
BY THE COMMISSIONER
"THE CAPITAL ADEQUACY TESTS ADMINISTERED OF BANKING UNDER THE BANKING ORDINANCE WILL BE APPROPRIATE," HE SAID.
SAID RECOGNISED DEALERS WOULD AS REGARDS ABILITY, SIR PIERS
DEALING OF OTHER MONRY MARKET NEED TO BE REASONABLY ACTIVE IN THE INSTRUMENTS AND IN THE INTERBANK MONEY MARKET.
"RECOGNISED DEALERS
INTEGRITY AND GOOD
SHOULD
REPUTATION
HAVE THE KNOWLEDGE, EXPERIENCE,
FOR NECESSARY
THEIR INTENDED AND ACCOUNTING SYSTEMS; RESPONSIBILITIES; ADEQUATE INTERNAL CONTROL AND A GOOD REPUTATION IN THE HONG KONG FINANCIAL MARKETS.
rr
DEALERS THE FINANCIAL SECRETARY WENT ON TO SAY THAT RECOGNISED
STANDING COMMENSURATE WITH SHOULD IDEALLY COMMAND A SUITABLE CREDIT
POSITION TO THE PRIVILEGE OF BEING ABLE TO MAKE USE OF THEIR DEALING OBTAIN ACCESS TO CHEAPER FUNDING.
SIR PIERS SAID THERE WAS NO INTENTION, AT LEAST CREATE A NEW SUPERVISORY SYSTEM FOR RECOGNISED DEALERS.
"THE RESPONSIBILITY FOR PRUDENTIAL SUPERVISION
SUPERVISORS, EXISTING
FALL ON BANKING," HE SAID.
IN
PARTICULAR
FIFTH AND
INITIALLY, ΤΟ
THE
WILL THEREFORE COMMISSIONER
OF
FINAL
FACTOR
AIMED FOR, BE COMPLIED
ΤΟ
BR
THE COMPLIANCE, AS REGARDS CONSIDERED, ALTHOUGH A HIGH DEGREE OF SELF-REGULATION WAS THERE WOULD BE A NEED FOR BASIC REGULATORY CONDITIONS TO WITH ON A CONTINUING BASIS.
IN MAKING THE REGULATIONS, "THERE WILL BE ADEQUATE FOR CONSULTATION," SIR PIERS SAID.
REGISTERED
IT IS EXPECTED THAT MOST RECOGNISED DEALERS WILL LICENSED
COMPANIES. SOME DEPOSIT-TAKING COMPANIES MAY ALSO QUALIFY.
"APPLICATIONS WILL NORMALLY ONLY BE ACCEPTED FROM
A
PAID-UP
ARE BANK-OWNED OR WHICH HAVE HK$100 MILLION," SIR PIERS SAID.
OPPORTUNITY
BE BANKS OR DEPOSIT-TAKING
CAPITAL OF NOT
THOSE WHICH LESS THAN
/OTHER INSTITUTIONS