XN000022-1984-05-16 — Page 25

WEDNESDAY, MAY 16, 1984

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BANKING PROPOSALS BEING EXAMINED

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THE GOVERNMENT IS NOW EXAMINING COMPREHENSIVE RECOMMENDATIONS MADE BY A BANK OF ENGLAND TEAM ON THE LOCAL BANKING SITUATION, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.

SIR JOHN SAID THIS IN REPLY TO THE HON LYDIA DUNN WHO ASKED WHETHER THE GOVERNMENT WAS SATISFIED WITH HONG KONG'S CURRENT SYSTEM OF PRUDENTIAL SUPERVISION ON DEPOSIT-TAKING COMPANIES.

SIR JOHN POINTED OUT THAT IN HIS LAST BUDGET SPEECH, HE STATED THE GOVERNMENT WAS NOT SATISFIED WITH THE PRESENT POSITION.

+HOW CAN WE BE IN THE LIGHT OF RECENT EVENTS →→ NOT LEAST THE NEED TO TAKE OVER THE HANG LUNG BANK?

+THUS I SAID THAT, THE BANKING ORDINANCE HAVING BEEN INTRODUCED IN 1964, IT SEEMED SENSIBLE TO TAKE A LOOK AT WHERE WE STAND. A TEAM FROM THE BANK OF ENGLAND WAS INVITED HERE TO CONDUCT A REVIEW, HE SAID.

HE TOLD THE COUNCIL THERE WAS COMPLETE AWARENESS OF THE NEED TO IMPROVE SUPERVISORY ARRANGEMENTS.

+1 SHALL BE SURPRISED IF FURTHER ADMINISTRATIVE AND LEGISLATIVE CHANGES ARE NOT IN DUE COURSE CONSIDERED APPROPRIATE, HE SAID.

BUT HE ADDED THAT CONSIDERABLE PRIOR CONSULTATION WOULD BE NECESSARY.

FURTHER STEPS TAKEN AGAINST +LOAN SHARKS+ *****

THE MONEY LENDERS (AMENDMENT) BILL 1984, WHICH WAS PASSED IN THE LEGISLATIVE COUNCIL TODAY, WOULD DO AWAY WITH MORE LOAN SHARKS, THE HON SO KWOK-WING SAID AT THE COUNCIL MEETING.

THE MONEY LENDERS ORDINANCE PROVIDES THAT ANY PERSON WHO LENDS OR OFFERS TO LEND MONEY AT AN EFFECTIVE RATE OF INTEREST EXCEEDING 60 PER CENT A YEAR COMMITS AN OFFENCE, MR SO POINTED OUT.

HE SAID THAT SINCE THE IMPLEMENTATION OF THIS ORDINANCE, MORE THAN 70 MONEY LENDERS HAD BEEN PROSECUTED.

TO RECOVER THE LOANS FROM DEBTORS WHO FAILED TO MAKE REPAYMENT, LOAN SHARKS HAD RESORTED TO INTIMIDATION, VIOLENCE AND OTHER CRIMINAL ACTIONS, MR SO SAID.

UNDER THE UNAMENDED ORDINANCE, MONEY LENDERS WHO CONTRAVENED ITS PROVISIONS WOULD GO UNPUNISHED IF THEY WERE NOT PROSECUTED WITHIN SIX MONTHS AFTER THE CONTRAVENTION.

WITH THE PASSAGE OF THE BILL, THIS LIMIT HAS BEEN EXTENDED TO TWO YEARS.

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