XN000022-1986-03-07 — Page 3

2

FRIDAY, MARCH 7, 1986

SIR DAVID ALSO TOLD THEM:

+THE BLUE PRINT BACKED BY GUARANTEES IS THERE, THE PEOPLE ARE HERE.

+WE HAVE ALL THE SKILLS AT OUR COMMAND, WE MUST HAVE THE CONFIDENCE THAT WE CAN COMPLETE THE TASK, JUST AS WE HAVE TACKLED AND SURMOUNTED SO MANY PROBLEMS IN THE PAST, WITH IMAGINATION, VISION, DETERMINATION AND PRACTICAL GOOD SENSE.+

HE WAS CONFIDENT OF THEIR CONTINUING COMMITMENT TO THE COMMUNITY, SIR DAVID CONCLUDED.

NOTE TO EDITORS:

THE TEXT OF SIR DAVID'S SPEECH HAS BEEN BOXED FOR COLLECTION.

BANKING BILL PUBLISHED

***

A BILL WILL SOON BE INTRODUCED INTO THE LEGISLATIVE COUNCIL TO IMPROVE PRUDENTIAL SUPERVISION OF BANKS AND DEPOSIT-TAKING COMPANIES.

THE BANKING BILL 1986, RECENTLY ENDORSED BY THE EXECUTIVE COUNCIL AND PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY), WILL. AFTER IT HAS TAKEN THE USUAL LEGISLATIVE COURSE, REPLACE THE PRESENT BANKING ORDINANCE AND DEPOSIT-TAKING COMPANIES ORDINANCE.

IT WILL COME INTO OPERATION ON A DATE TO BE FIXED BY THE GOVERNOR, AND THERE MAY BE DIFFERENT DATES FOR DIFFERENT PROVISIONS.

THE BILL IS THE END PRODUCT OF THE GOVERNMENT'S REVIEW OF PRUDENTIAL SUPERVISION AND EXTENSIVE CONSULTATION WITH THE INDUSTRY OVER THE PAST YEAR. IT PROVIDES A UNIFIED APPROACH, AND A NUMBER OF PROVISIONS REPRESENT NEW DEPARTURES, IN SUPERVISING BANKS AND DEPOSIT-TAKING COMPANIES - REFERRED TO AS +AUTHORISED INSTITUTIONS+ IN THE BILL. HOWEVER, MANY PROVISION OF THE BILL ARE CARRIED OVER FROM THE CORRESPONDING ONES IN THE TWO PRESENT ORDINANCES.

THE MAIN NEW PROVISIONS, OR SUBSTANTIAL CHANGES TO EXISTING PROVISIONS, RELATE TO THE FOLLOWING AREAS: THE COMMISSIONER'S ROLE, AUDIT, REGULATION OF OWNERSHIP AND MANAGEMENT, RESTRICTION ON LOANS, CAPITAL TO RISK ASSETS RATIO, AND LIQUIDITY RATIO.

THE COMMISSIONER'S