XN000022-1986-05-28 — Page 13

WEDNESDAY, MAY 28, 198€

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+DIFFERENT, MORE TIMELY APPROACH IN BANKING SUPERVISION

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THE BANKING BILL 1986 REFLECTS A DIFFERENT BUT MORE TIMELY EMPHASIS IN GOVERNMENT'S APPROACH TO THE SUPERVISION OF BANKING BUSINESS, THE HON YEUNG PO-KWAN SAID TODAY (WEDNESDAY).

SPEAKING DURING THE RESUMED DEBATE ON THE BILL IN THE LEGISLATIVE COUNCIL, HE SAID ITS PROVISIONS WERE MORE FLEXIBLE AND MORE DEPENDENT ON THE COMMISSIONER OF BANKING'S DISCRETION AND PROFOUND JUDGMENT.

+MOREOVER, BETTER SUPERVISION CAN BE ACHIEVED BY UNIFYING THE SUPERVISION OF BANKS AND THAT OF DEPOSIT-TAKING COMPANIES.

+HENCE, THE BILL CLEARLY INDICATES THAT GOVERNMENT TAKES STEPS TO REINFORCE CONTROL AND DRAWS UP A SET OF GUIDELINES TO ENSURE A HEALTHY DEVELOPMENT OF THE FINANCIAL SECTOR IN FUTURE,+ HE SAID.

MR YEUNG SAID HE BELIEVED THAT THE COMMISSIONER OF BANKING SHOULD BE GIVEN GREATER POWER IN ORDER TO EFFECTIVELY SUPERVISE THE BUSINESS OF BANKS AND DEPOSIT-TAKING COMPANIES, ADDING THAT THIS WOULD IN TURN GIVE HIM MORE RESPONSIBILITIES.

HE OBSERVED THAT THE QUALITY, EXPERIENCE AND JUDGMENT OF THE COMMISSIONER AND HIS STAFF WOULD BE THE CRUCIAL ELEMENTS FOR EFFECTIVE SUPERVISION.

HE SAID THE OFFICE OF THE COMMISSIONER OF BANKING SHOULD CONTINUE TO MAKE EFFORTS TO UPGRADE THE QUALITY OF ITS STAFF AS WELL AS TO RECRUIT AND TRAIN MORE SUITABLE PERSONNEL.

MR YEUNG SAID THE AMENDED BILL DID NOT AFFECT THE ORIGINAL SPIRIT OF THE LEGISLATION BUT CONSOLIDATED AND MAINTAINED THE SOUND OPERATING SYSTEM OF BANKS AND DEPOSIT-TAKING COMPANIES.

HE ADDED THAT FOR THE SAKE OF A FAVOURABLE DEVELOPMENT OF THE WHOLE FINANCE INDUSTRY AND ECONOMY, IT WAS PARTICULARLY IMPORTANT FOR THE FINANCIAL INDUSTRY TO EXERCISE GREATER SELF-DISCIPLINE.

+ALL IN ALL, THE BILL CAN BE SAID TO BE A COMPACT AND COMPREHENSIVE DOCUMENT.

+ IT DOES NOT ONLY ENHANCE THE SUPERVISION STANDARD OF

THE LOCAL BANKING INDUSTRY, BUT ALSO HELPS IN THE DEVELOPMENT OF THE FINANCIAL INDUSTRY IN HONG KONG AND ENSURE THAT DEPOSITORS AND INVESTORS WILL HAVE CONFIDENCE IN THE LOCAL BANKING INDUSTRY,+ MR YEUNG SAID.

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