XN000022-1978-07-29 — Page 2

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SATURDAY, JULY 29, 1978

SEVEN MORE BANKS GRANTED LICENCES *****

THE GOVERNOR-IN-COUNCIL HAS GRANTED A FURTHER SEVEN BANKS LICENCES TO CONDUCT BUSINESS IN HONG KONG.

THIS BRINGS TO 16 THE NUMBER OF BANKS GRANTED LICENCES SINCE THE GOVERNMENT ANNOUNCED IN MARCH THAT IT WAS EASING THE MORATORIUM ON THE GRANTING OF LICENCES.

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THE SEVEN BANKS ARE: BANK OF MONTREAL BANQUE DE PARIS ET. DES PAYS-BAS- CANADIAN IMPERIAL BANK OF COMMERCE COMMERZBANK CREDIT LYONNAIS- SOCIETE GENERALE AND STATE BANK OF INDIA.

IN MAY, LICENCES WERE GRANTED TO THE BANK OF NOVA SCOTIA= CHEMICAL BANK LLOYDS BANK INTERNATIONAL LIMITED- MANUFACTURERS HANOVER TRUST COMPANY MORGAN GUARANTY TRUST COMPANY OF NEW YORK= NATIONAL WESTMINSTER BANK LIMITED THE ROYAL BANK OF CANADA= THE ROYAL BANK OF SCOTLAND LIMITED AND THE TORONTO DOMINION BANK.

A GOVERNMENT SPOKESMAN SAID IT WAS EXPECTED THAT FURTHER LICENCES WOULD BE GRANTED IN DUE COURSE.

CRITERIA FOR THE GRANTING OF LICENCES ARE THAT:

* APPLICANT BANKS SHOULD BE INCORPORATED IN COUNTRIES, THE MONETARY AUTHORITIES OF WHICH EXERCISE EFFECTIVE SUPERVISION AND HAVE, WHERE NECESSARY, APPROVED THE ESTABLISHMENT OF A BRANCH IN HONG KONG=

*

APPLICANT BANKS SHOULD HAVE TOTAL ASSETS IN EXCESS OF US$3,000 MILLION=

* SOME FORM OF RECIPROCITY SHOULD BE AVAILABLE TO

HONG KONG BANKS AND

* THE GRANTING OF LICENCES SHOULD BE SUBJECT TO THE

CONDITION THAT SUCH BANKS WILL CONDUCT BUSINESS FROM ONLY ONE OFFICE IN HONG KONG.

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