XN000022-1986-05-28 — Page 3

WEDNESDAY, MAY 28, 1986

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FS: CHANGES STRENGTHEN PRUDENTIAL SUPERVISION

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AMENDMENTS TO THE BANKING BILL 1986 DO NOT AFFECT THE SUBSTANCE OF THE NEW POLICIES AND APPROACHES EMBODIED IN IT, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

HE SAID ALL AGREED THAT THESE AMENDMENTS WERE NECESSARY TO STRENGTHEN PRUDENTIAL SUPERVISION AND THUS TO PROMOTE A STABLE SYSTEM AND A DEGREE OF PROTECTION FOR DEPOSITORS, SIR JOHN SAID WHEN WINDING UP DEBATE ON THE BILL.

THIS CONSENSUS REFLECTED THE RESULT OF THE EXTENSIVE CONSULTATION BEFORE THE BILL WAS DRAFTED.

+MOST OF THE AMENDMENTS COVER PRACTICAL, TECHNICAL AND DRAFTING MATTERS INDEED, A NUMBER OF THEM RELATE TO PROVISIONS THAT ARE CARRIED OVER FROM THE TWO EXISTING ORDINANCES WHICH THE BILL WILL REPLACE, HE SAID.

SIR JOHN DESCRIBED THE BILL AS ARGUABLY THE MOST IMPORTANT TO COME BEFORE THE COUNCIL THIS SESSION. ITS IMPORTANCE STEMMED FROM THE FACT THAT A STABLE AND PROSPEROUS ECONOMY WAS ESSENTIAL FOR THE FUTURE OF HONG KONG.

SOUND BANKING WAS A VITAL ELEMENT. ALL HAD CLEARLY NOT BEEN WELL, AND WHILE NEW LAW WOULD NOT PROVIDE A PANACEA THE BILL WAS A MAJOR STEP FORWARD.

+ WITH EXPERIENCE THERE WILL BE A NEED FOR FURTHER AMENDMENT AND IMPROVEMENT. BUT WE WILL HAVE A PROPER FOUNDATION ON WHICH TO BUILD, HE SAID.

SIR JOHN NOTED THAT THOUGH THE BILL WAS ON SCHEDULE, IT HAD BEEN A +CLOSE RUN THING+. WITH COMMITTEE STAGE AMENDMENTS TO 78 CLAUSES TO BE MADE 171 IN ALL.

HE PAID TRIBUTE TO THE MAJOR AND VERY KNOWLEDGEABLE CONTRIBUTIONS MADE BY THE LEGCO AD HOC GROUP THAT SCRUTINISED THE BILL.

HE ALSO THANKED THE OTHERS INVOLVED, INCLUDING THE OFFICE OF THE COMMISSIONER OF BANKING, THE MONETARY AFFAIRS BRANCH, THE LAW DRAFTSMAN, THE HONG KONG ASSOCIATION OF BANKS, THE DTC ASSOCIATION, THE TWO ADVISORY COMMITTEES, THE HONG KONG SOCIETY OF ACCOUNTANTS AND MANY OTHER OUTSIDE INSTITUTIONS.

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+ CANNOT REMEMBER ANY BILL WHICH HAS BEEN THE PRODUCT OF SO MUCH CONSULTATION AND HARD WORK, HE OBSERVED.

SER JOHN