XN000022-1982-02-10 — Page 21

19

WEDNESDAY, FEBRUARY 10, 1982

+THE BILLS COVER THE EXAMINATION BY THE COMMISSIONER OF OVERSEAS BRANCHES OF THESE BANKS AND DEPOSIT-TAKING COMPANIES (IN THE SAME WAY AS HE NOW EXAMINES THEIR BRANCHES IN HONG KONG)= AND ALSO THE EXAMINATION BY OVERSEAS SUPERVISORY AUTHORITIES OF THE HONG KONG BRANCHES OF BANKS OR DEPOSIT-TAKING COMPANIES INCORPORATED IN THEIR COUNTRIES, MR BREMRIDGE SAID.

THE BILLS ALSO COVER THE SUPERVISION BY THE COMMISSIONER OF REPRESENTATIVE OFFICES ESTABLISHED OVERSEAS BY HONG KONG- INCORPORATED BANKS AND DEPOSIT-TAKING COMPANIES, OR ESTABLISHED IN HONG KONG BY OVERSEAS BANKS.

+THE GATHERING OF INFORMATION BY THE COMMISSIONER IS NOT

AN END IN ITSELF, BUT A MEANS TO AN END, HE ADDED.

+WHEN THE COMMISSIONER HAS AN ADEQUATE UNDERSTANDING OF WHAT LOCALLY INCORPORATED BANKS AND DEPOSIT-TAKING COMPANIES ARE DOING OVERSEAS, OR THROUGH THEIR SUBSIDIARIES OR ASSOCIATES, THE GOVERNMENT WILL BE ABLE TO DEVELOP, AND THEN TO SEEK THE POWERS TO IMPLEMENT, A SYSTEM OF ON-GOING BALANCE-SHEET RATIO CONTROLS BASED ON CONSOLIDATED BALANCE SHEETS - A CONCEPT WHICH IS BEING MUCH DISCUSSED IN THE COOKE COMMITTEE AND ELSEWHERE.+

MONEY LENDERS BILL

***

THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) PASSED A RESOLUTION TO INCLUDE OVERSEAS BANKS CONSIDERED BY THE COMMISSIONER OF BANK ING TO BE ADEQUATELY SUPERVISED BY THE BANKING AUTHORITY OF THEIR COUNTRY OF ORIGIN, MEMBERS OF THE INTERNATIONAL UNION OF CREDIT AND INVESTMENT INSURERS (THE BERNE UNION), AND OTHER GOVERNMENT EXPORT FINANCING BODIES, IN THE FIRST SCHEDULE TO THE MONEY LENDERS ORDINANCE CAP. 163.

IN THE FIRST SCHEDULE TO THE ORDINANCE ARE +EXEMPTED PERSONS+ AND +EXEMPTED LOANS+ TO WHICH PARTS 11 AND 111 OF THE ORDINANCE GOVERNING LICENSING AND TRANSACTIONS OTHER THAN INTEREST RATES AND CHARGES DO NOT APPLY, BECAUSE THEY ARE ALREADY SUBJECT TO ADEQUATE CONTROL.

AMONG +EXEMPTED PERSONS+ ARE BANKS LICENSED IN HONG KONG, DEPOSIT-TAKING COMPANIES, CO-OPERATIVE SOCIETIES AND CREDIT UNION- +EXEMPTED LOANS+ INCLUDE LOANS MADE WITHIN A COMPANY, MORTGAGES AND LOANS MADE BY COMPANIES IN THE COURSE OF THEIR BUSINESS.

IN MOVING THE MOTION, THE SECRETARY FOR ECONOMIC SERVICES THE HON D.G. JEAFFRESON SAID THE ORGANISATIONS WHICH HE PROPOSED TO ADD TO THE FIRST SCHEDULE ARE PROPERLY CONTROLLED AND DO NOT NEED TO BE FURTHER CONTROLLED UNDER PARTS 1 AND 111 OF THE MONEY LENDERS ORDINANCE.

ALSO ADDED TO THE LIST ARE LOANS BETWEEN COMPANIES OF THE SAME GROUP. MR JEAFFRÉSON SAID IT WAS CONSIDERED MOT NECESSARY TO PROTECT COMPANIES AGAINST THEIR OWN CLOSE RELATIVES.

HE QUOTED THE ATTOPNLY GENERAL WHO TOLD THE COUNCIL ON JANUARY 6 THAT THE ORDINANCE HAD HAD A BENEFICIAL EFFECT BY TIGHTENING CONTROL OVER MONEY LENDERS GENERALLY AND DIMINISHING THE INCIDENCE OF LOAN

ARKING+.

120