MONDAY, APRIL 29, 1991
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BANKING INDUSTRY CONTINUES ITS SOLID PERFORMANCE
BANKS IN
HONG KONG SAW ANOTHER YEAR OF SOLID PERFORMANCE IN 1990, THE COMMISSIONER OF BANKING, MR TONY NICOLLE, NOTED IN HIS ANNUAL REPORT.
THE REPORT, WHICH WAS PUBLISHED TODAY (MONDAY), REVIEWS BANKING SUPERVISORY AND DEVELOPMENTS OVER THE PAST YEAR.
SPEAKING AT A PRESS CONFERENCE, MR NICOLLE POINTED OUT THAT MOST LOCAL BANKS SHOWED STRONG PROFIT GROWTH DURING THE YEAR.
"THERE WAS A HEALTHY INCREASE IN EARNINGS DESPITE THE SHOCKS CAUSED BY THE MIDDLE EAST TENSIONS AND THE DIFFICULTIES ARISING FROM GENERALLY DETERIORATING ECONOMIC CONDITIONS WORLDWIDE, HE SAID.
ALL THEM.
HE
WERE
"AS
**
ADDED THAT THE BANKS IN HONG KONG WERE WELL CAPITALISED ABLE TO MEET THE MINIMUM CAPITAL ADEQUACY RATIOS SET FOR
A WHOLE, THE INDUSTRY'S AGGREGATE CAPITAL ADEQUACY RATIO WAS MORE THAN 14 PER CENT, WELL OVER THE EIGHT PER CENT MINIMUM SET BY THE BASLE COMMITTEE ON BANKING SUPERVISION,' MR NICOLLE SAID,
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THE REPORT NOTES THE CONTINUING ATTRACTIVENESS OF HONG KONG AS
AN INTERNATIONAL FINANCIAL CENTRE.
"THE NUMBER OF BANKS AT YEAR-END WAS A RECORD 168 (165 IN 1989); AND THE NEW CATEGORY OF RESTRICTED LICENCE BANK ATTRACTED FURTHER ENTRANTS TO THE MARKET," MR NICOLLE POINTED OUT.
"THIRTEEN NEW RESTRICTED BANKING LICENCES HAVE BEEN GRANTED
SINCE ITS INTRODUCTION IN FEBRUARY 1990," HE SAID.
OVERSEAS BANKS то
THIS NEW AUTHORISATION CATEGORY PERMITS BRANCH INTO HONG KONG RATHER THAN HAVING TO FORM SUBSIDIARIES. IT ALSO GIVES THEM LIMITED FREEDOM TO USE BANKING NAMES.
MR NICOLLE PREDICTED, HOWEVER, THAT THE NUMBER OF AUTHORISED INSTITUTIONS WOULD FALL DURING 1991.
"A NUMBER OF FOREIGN BANKS ARE LIKELY TO CONSOLIDATE THEIR BUSINESSES BY MERGERS, AND A FEW DEPOSIT-TAKING COMPANIES, PARTICULARLY THOSE IN A GROUP WITH MULTIPLE AUTHORISATIONS, ARE LIKELY TO GIVE UP THEIR UNNECESSARY OR LITTLE USED REGISTRATIONS, HE SAID.
"
HE STRESSED THAT THIS REFLECTED A PROCESS OF RATIONALISATION, AND THAT HE WAS CONFIDENT ABOUT HONG KONG'S ROLE AS A WORLD FINANCIAL CENTRE.
TURNING TO THE TREND SEEN IN 1989 OF LENDING IN HONG KONG DOLLARS INCREASING MORE RAPIDLY THAN HONG KONG DOLLAR DEPOSITS, MR NICOLLE POINTED OUT THAT THE SITUATION HAD STABILISED IN 1990.
/ON THE