MONDAY, JULY 8. 1991
"WE THEN SOUGHT CERTAIN
ASSURANCES FROM ABU DHARBI. THOSE ASSURANCES WERE NOT FORTHCOMING, AND SO WE FELT THAT IT WAS NECESSARY TO STOP THE BANK FROM OPENING TODAY.'
Ir
ASKED IF MISLEADING MESSAGES HAD BEEN SENT TO PIERS SAID HE DID NOT THINK SO.
DEPOSITORS, SIR
"WE HAD CERTAIN INFORMATION ON SATURDAY THAT SATISFIED US THE BANK COULD OPEN QUITE SAFELY.
THAT
HE SAID THE BANK, A LOCAL SUBSIDIARY OF BCCI, HAD BEEN UNDER SUPERVISION HERE AND THE GOVERNMENT HAD NO REASON TO BELIEVE THAT IT COULD NOT MEET ITS LIABILITIES AND THERE WAS NO REASON FOR CLOSING IT ON SATURDAY.
"THE SITUATION OVER THE WEEKEND HAD CHANGED
THAT WE WERE NOT GIVEN CERTAIN ASSURANCES THAT WE REQUIRED AND THEREFORE ON MONDAY (TODAY) WE FELT THAT IT WAS APPROPRIATE TO PREVENT THE BANK FROM OPENING, HE SAID.
·
RECOGNISING THE PUBLIC'S WISH TO HAVE MORE INFORMATION, SIR PIERS SAID HOPEFULLY HE HIMSELF OR THE COMMISSIONER OF BANKING WOULD BE IN A POSITION TO GIVE MORE INFORMATION ON THIS MATTER TOMORROW.
BANK SUSPENDED TO PROTECT ASSETS
* * * * *
THE DECISION TO SUSPEND THE OPERATIONS OF THE BANK OF CREDIT AND COMMERCE HONG KONG LIMITED (BCCHK) WAS TAKEN ΤΟ SAFEGUARD THE ASSETS OF THE BANK.
SPEAKING AT A PRESS CONFERENCE THIS (MONDAY) MORNING, THE COMMISSIONER OF BANKING, MR. DAVID CARSE SAID THE DECISION TO DRAW THE LINE AT THIS POINT AND TO SUSPEND THE BANK'S OPERATIONS WAS "THE FAIREST THING TO ALL CONCERNED",
"WHAT THAT MEANS IS THAT WE HAVE ASKED THE BANK NOT TO ITS DOORS TODAY AND WE HAVE EFFECTIVELY FROZEN THE DEPOSITS WHICH HELD WITHIN IT."
OPEN
ARE
"IN DOING SO, WE FOLLOWED THE SORT OF ACTION WHICH HAS BEEN TAKEN BY OTHER SUPERVISORS AROUND THE WORLD, HE SAID.
H
EXPLAINING WHY THE DECISION HAD TO BE TAKEN AT THIS POINT, MR. CARSE SAID THAT ALTHOUGH THE BANK IS STILL BASICALLY SOUND, DOUBTS HAVE ARISEN OVER THE WEEKEND ABOUT ITS FUTURE VIABILITY FOR TWO REASONS.
"ONE IS THAT WE HAVE BEEN UNABLE TO GET A CLEAR ASSURANCE FROM THE ABU DHABI GOVERNMENT THAT IT STANDS BEHIND THE OPERATIONS THE BANK.
OF
/"THE SECOND