TUESDAY, MAY 21, 1974
FURTHER CONTROL ON FINANCE COMPANIES DISCLOSED BILL PROTECTING DEPOSITORS BEING REDRAFTED
THE PROTECTION OF DEPOSITORS BILL IS BEING REDRAFTED, PROPOSING TO SET $200,000 AS THE MINIMUM SIZE OF DEPOSIT A FINANCE COMPANY CAN ACCEPT AND $5 MILLION AS THE MINIMUM CAPITAL REQUIREMENT, HALF OF WHICH HUST BE PAID UP, OF THESE COMPANIES.
THE RESTRICTIVE MEASURES TO FURTHER CONTROL THE ACTIVITIES OF THESE COMPANIES WERE DISCLOSED BY THE COTHSSIONER OF BANKING, MR. ANTHONY OCKENDEN, UKEN KE ADDRESSED A MEETING OF THE LIONS CLUB OF HAPPY VALLEY TODAY.
HE POINTED OUT THAT THESE VERE TENTATIVE FIGURES BEING SUGGESTED AND CONSIDERED AT THE MOMENT, AND KE HVITED PUBLIC COMMENTS ON THE).
IN HIS RELATIVELY LENGTHY SPEECH, THE COMISSIONER INDICATED THAT THERE WAS LITTLE LIKELIN:030 OF NEV BANKING LICENCES BEING ISSUED UNTIL A CURRENT REVIEU OF THE PRESENT BANK LICENSING POLICY IS COMPLETED.
PE ALSO SUGGESTED THE DEVELOPMENT OF <PROFESSIONAL TYPE ASSOCIATIONS+ IN HONG KONG'S FINANCIAL SECTOR, AND HE ASSURED THAT HE WOULD PERSONALLY DO ALL HE COULD TO HELP AND ENCOURAGE THEIR FORMATION.
ON THE OPERATION OF THE FINANCE COMPANIES, 17. OCKENDEŇ NOTED THAT WITH THE HONG KONG DOLLAR DEPUSIT BASE CONTAINED MAINLY WITHIN THE BANKING SYSTEM, THERE WAS NO APPARENT UNDERLYING DANGER TO THE EGOKCNY FRCH THE MAKE-UP AND ACTIVITIES OF SUCH COMPANIES.
NEVERTHELESS, K2 FELT THAT HONG KONG COULD BE IN A VULNERABLE POSITION WITHOUT KNOWING WHIGH COMPANIES -- OR EVEN HOW MANY VERE ACTIVELY ENGAGED IN DEPJSIT TAKING.
Q
THE GOVERNMENT HAD ALREADY ANNOUNCED THAT IN ORDER TO SAFEGUARD TIE SMALL DEPOSITON, THE PROTECTION OF DEPOSITONS LEGISLATION WAS IN THE PIPELINE WHICH WOULD STIPULATE A MINIMUM SIZE OF DEPOSIT THAT THESE COMPANIES COULD ACCEPT.
+GOVERNMENT IS NOW BEING STRONGLY ADVISED FROM SEVERAL SOURCES THAT THIS ONE PROVISION IS INSUFFICIENT AND THAT THERE SHOULD BE OTHER FORMS OF RESTRICTION OR CONTROL ON THE ACTIVITIES OF FINANCE COMPANIES. CONSEQUENTLY, THE BILL IS NOW BEING REDRAFTED TO INCLUDE CON-ULSURY REGISTRATION OF DEPOSIT TAKING COMPANIES AND TO REQUIRE THESE COMPANIES TO HAVE A MINIMUM CAPITAL STRUCTURE.❖
HE SAID..
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