22
WEDNESDAY, NOVEMBER 6, 1991
WOULD
ON THE BANKING FRONT, THE SECRETARY SAID THE GOVERNMENT BE CONTINUING THE ONGOING TASK OF REVIEWING THE LEGISLATIVE PROVISIONS IN THE LIGHT OF PERATIONAL EXPERIENCE AND DEVELOPMENTS.
BETWEEN CO-OPERATION
"WE INTEND TO INTRODUCE AMENDMENTS TO THE BANKING ORDINANCE DURING THE CURRENT SESSION WHICH,
WILL AMONGST OTHER THINGS, STRENGTHEN
AUDITORS AND THE
OF COMMISSIONER
BANKING.
"THIS
INTERNAL WILL ENHANCE THE MONITORING OF BANKS' AND THUS ENABLE THE EARLY DETECTION OF ANY PROBLEMS.
CONTROLS
"SOME TECHNICAL AMENDMENTS IDENTIFIED AS DESIRABLE IN THE LIGHT WILL OF THE PROBLEMS WHICH WERE ASSOCIATED WITH THE CLOSURE OF BCCHK ALSO BE INCLUDED," HE SAID.
ON BCCHK, MR NENDICK REITERATED THAT THE PROBLEMS RESULTED FROM EVENTS OUTSIDE HONG KONG AND SHOULD NOT BE SEEN AS DETRACTING FROM THE SOUNDNESS OF THE TERRITORY'S BANKING SYSTEM.
HE
THE SAID
HONG KONG CHINESE BANK HAD COMPLETED ITS DUE DILIGENCE REVIEW AND HAD MADE PROPOSALS FOR THE TAKEOVER OF THE BANKING BUSINESS OF BCCHK.
"THESE PROPOSALS ARE UNDER CAREFUL
CONSIDERATION BY THE
OFFICIAL RECEIVER.
"AS
NEGOTIATIONS ARE STILL IN PROGRESS, IT WOULD BE UNWISE SPECULATE ON THEIR CHANCES OF SUCCESS.
TO
"ANY TERMS THAT MIGHT BE PROVISIONALLY AGREED BY THE PROVISIONAL LIQUIDATOR WOULD REQUIRE THE SANCTION OF THE
AND COURT, THE DEPOSITORS AND OTHER CREDITORS WOULD ALSO NEED TO BE CONSULTED, HE SAID,
ON WHETHER HONG KONG SHOULD HAVE SOME FORM OF DEPOSIT INSURANCE A SCHEME, MR NENDICK SAID THE GOVERNMENT WAS WORKING HARD ON DRAFTING PUBLIC CONSULTATION PAPER WHICH IT HOPED COULD BE PUBLISHED BY THE END OF THIS YEAR.
OF
CONCEDING THAT THE ISSUE WAS A COMPLEX ONE WHICH NEEDED CAREFUL RESEARCH, HE SAID THE AUTHORITIES WERE DRAWING UPON THE EXPERIENCE OTHER CENTRES AS WELL AS EVALUATING THE IMPACT THE DEPOSIT INSURANCE SCHEME WOULD HAVE FOR THE DEPOSITORS AND BANKING SYSTEM.
IT WOULD BE IMPRUDENT TO RUSH INTO HASTY DECISIONS ON THIS ISSUE AND THE GOVERNMENT WOULD BE TAKING CAREFUL ACCOUNT OF THE VIEWS OF BOTH OF THE GENERAL PUBLIC AND OF THE BANKING SECTOR IN THE COURSE THE CONSULTATION PROCESS, HE SAID.
SECRETARY SAID THE
AS REGARDS THE INSURANCE INDUSTRY, THE GOVERNMENT WOULD CONTINUE ITS REGULAR REVIEW TO ENSURE THAT PROVISIONS OF THE INSURANCE COMPANIES ORDINANCE WERE UP-TO-DATE IN THE LIGHT OF OPERATIONAL EXPERIENCE AND MARKET DEVELOPMENTS.
/TO THIS