XN000022-1980-12-17 — Page 4

WEDNESDAY, DECEMBER 17, 1980

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+WITHOUT WISHING TO OVERSTATE THE ROLE OF THE EBA IN THIS MATTER, I FEEL IT FAIR COMMENT THAT THE BILL'S ACCEPTANCE BY MOST BANKERS REFLECTS THE CO-OPERATION, MENTIONED EARLIER, BETWEEN THE ASSOCIATION AND THE CONCERNED GOVERNMENT OFFICIALS.+

SOME CRITICAL COMMENTS ON THE BILL WERE MADE BY A MINORITY OF THE BANKING COMMUNITY, MR BROWN SAID.

FIRST, THERE IS AN UNEASE THAT THE COMMITTEE OF THE ASSOCIATION CAN MAKE AND ENFORCE RULES RELATING TO THE CONDUCT OF THE BUSINESS OF BANKING.

SOME SEE THIS AS AN OPPORTUNITY FOR ONE GROUP OF BANKS, THAT IS THOSE ON THE COMMITTEE, TO FRAME RULES TO THEIR COMPETITIVE ADVANTAGE AGAINST THOSE NOT ON THE COMMITTEE.

BUT MR BROWN SAID THE AFFAIRS OF THE NEW ASSOCIATION WILL BE VERY MUCH IN THE PUBLIC EYE AND THIS - WHEN ADDED TO THE NEED FOR LIAISON AND CONSULTATION WITH GOVERNMENT - MAKE IT UNREALISTIC TO BELIEVE THAT DECISIONS WOULD BE, OR INDEED COULD BE MADE OTHER THAN IN COMMON INTEREST,

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SECONDLY, THERE IS SOME DISAPPOINTMENT THAT THE CONSULTATIVE COUNCIL HAS NOT BEEN GIVEN MORE POWER.

+ IT IS TRUE THAT THE BILL DOES NOT REQUIRE THE COMMITTEE TO ACT ON MATTERS REFERRED TO IT BY THE COUNCIL, BUT NEVERTHELESS THE COUNCIL'S VOICE WILL BE A POWERFUL ONE,+ MR BROWN SAID,

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+THE COUNCIL'S MEMBERSHIP OF 23 BANKS OUT OF A TOTAL ASSOCIATION MEMBERSHIP OF 113, AND PROBABLY 115 BY THE TIME THE COUNCIL COMES INTO BEING, REPRESENTS A SIGNIFICANT PERCENTAGE OF THE TOTAL MEMBERSHIP.

+ IF A MATTER OF IMPORTANCE WAS REFERRED BY THIS VERY REPRESENTATIVE BODY TO THE COMMITTEE IT IS UNLIKELY THAT THE LATTER WOULD BE ABLE TO IGNORE IT WITHOUT GOOD REASONS.

+AND THIS IS THE MORE SO BEARING IN MIND THAT THE COMMITTEE ITSELF WILL CONSIST OF 12 MEMBERS OF WHICH FIVE OF THE ELECTED MEMBERS WILL BE PROVIDED BY BANKS INCORPORATED OUTSIDE HONG KONG,+ HE SAID.

HE EXPRESSED CONFIDENCE, AND HE SAID THIS WAS SHARED BY MOST BANKERS, THAT THE NEW ASSOCIATION OF BANKS WOULD PROVIDE A BETTER VEHICLE THAN THE EXISTING EBA TO DISCHARGE THE IMPORTANT ROLE ACCORDED THE BANK ING INDUSTRY IN THE MANAGEMENT OF HONG KONG'S MONETARY SYSTEM.

IN THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, REPLY TO MR LI AND MR BROWN SAID THEIR SPEECHES REFLECTED THE GENERAL VIEW OF BANKERS AND GOVERNMENT OFFICIALS THAT THE TIME HAD COME TO RE-DEFINE THE ROLE OF THE BANKS' ASSOCIATION AND RECAST ITS CONSTITUTION.

/+IN SO

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