FRIDAY, APRIL 26, 1991
10
AMENDMENTS TO BANKING ORDINANCE Gazetted
*
**
THE BANKING
1991 WHICH SEEKS TO (NO. 2) BILL (AMENDMENT}
BETTER INTRODUCE AMENDMENTS TO THE BANKING ORDINANCE REQUIRED FOR THE
IN THE GAZETTE TODAY WAS PUBLISHED OF SUPERVISION
THE INDUSTRY (FRIDAY).
THE PROPOSED AMENDMENTS INCLUDE IMPROVEMENTS TO THE FOR REGULATING CHANGES OF CONTROL OF LOCALLY INCORPORATED INSTITUTIONS AND UPDATING THE REQUIREMENTS ON LARGE LOANS RISK CONCENTRATIONS.
PROVISIONS AUTHORISED OTHER
AND
REGULATING
"THERE WERE SHORTCOMINGS IN THE EXISTING SYSTEM FOR CHANGES OF CONTROL OF AUTHORISED INSTITUTIONS," A GOVERNMENT SPOKESMAN SAID.
"FOR INSTANCE, THE PRESENT REGIME DOES NOT ENABLE CONSENT TO BE NO WITHDRAWN FROM A CONTROLLER WHEN THERE IS EVIDENCE THAT HE IS LONGER FIT AND PROPER.
OF
CENT
THERE "SECONDLY,
CONTROL IS NO
OVER THE ACQUISITION SHAREHOLDINGS, WHICH STOP SHORT OF FULL CONTROL (THAT IS 10 PER
COMPANY. INCREASINGLY TO 49 PER CENT), IN AN INSTITUTION'S HOLDING INSTITUTIONS ARE BECOMING PART OF GROUPS, UNDER A HOLDING COMPANY.
"THIRDLY, IT IS ONLY AFTER AN OWNER HAS ACQUIRED AN INTEREST IN AN INSTITUTION THAT HE IS FORMALLY REQUIRED TO SEEK PERMISSION.
"THE
COMMISSIONER OF BANKING THEREFORE CANNOT PREVENT WHO ARE NOT FIT AND PROPER FROM BECOMING CONTROLLERS INSTITUTIONS," THE SPOKESMAN SAID.
PERSONS
OF AUTHORISED
70
BY REPEALING CLAUSE 18 OF THE BILL DEALS WITH THESE PROBLEMS SECTION 70 OF THE BANKING ORDINANCE AND SUBSTITUTING NEW SECTIONS TO 70D.
IS EMPOWERED TO "UNDER THE NEW PROVISION, THE COMMISSIONER OBJECT, ON CERTAIN SPECIFIED GROUNDS, TO PERSONS BECOMING OR REMAINING
IN INCORPORATED
HONG KONG. CONTROLLERS OF AUTHORISED INSTITUTIONS
THE SPOKESMAN SAID. APPROPRIATE SANCTIONS ARE ALSO INTRODUCED,
AMENDMENTS ARE ALSO MADE BY REPEALING SECTION 72 UNDER 20 AND AMENDING SECTION 72A UNDER CLAUSE 21.
CLAUSE
"THE PROPOSALS ARE LARGELY BASED ON PROVISIONS CONTAINED IN THE
THE SPOKESMAN SAID. INSURANCE COMPANIES ORDINANCE,
ANOTHER AREA WHERE MAJOR CHANGES ARE CONTEMPLATED IS PART XV OF TO A THE ORDINANCE. THIS PART LIMITS THE SIZE OF INDIVIDUAL LOANS
CEILINGS ARE ALSO PLACED ON SINGLE BORROWER, OR GROUP OF BORROWERS. OTHER INVESTMENT INTERESTS OF AUTHORISED INSTITUTIONS.
/PROPOSED AMENDMENTS