XN000022-1986-05-28 — Page 8

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WEDNESDAY, MAY 28, 1986

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MR SWAINE SAID AMENDMENTS WOULD ACCORDINGLY BE MOVED TO THE SE CLAUSES AT THE COMMITTEE STAGE AND ALSO TO CLAUSE 99 (1) BY PERMITTING AN APPEAL FROM THE COMMISSIONER TO THE FINANCIAL SECRETARY WHERE THE FORMER REQUIRED AN AUTHORISED INSTITUTION TO CEASE ISSUING A MISLEADING ADVERTISEMENT.

EIGHT OTHER UNOFFICIALS, THE HON STEPHEN CHEONG, DR THE HON HENRIETTA IP, THE HON PETER POON, THE HON YEUNG PO-KWAN, THE HON HILTON CHEONG-LEEN, THE HON THOMAS CLYDESDALE, THE HON DAVID LI AND THE HON HELMUT SOHMEN, SPOKE ON ASPECTS OF THE BILL.

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STEP TO RESTORE GREATER PUBLIC CONFIDENCE

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THE BANKING BILL 1986 IS CLEARLY PERCEIVED AS A MEASURE REQUIRED TO DEAL WITH THE PROBLEM AREAS IDENTIFIED IN RECENT COLLAPSES AND LIQUIDITY CRISES OF A NUMBER OF OUR FINANCIAL INSTITUTIONS AND TO REINTRODUCE GREATER PUBLIC CONFIDENCE IN THE WHOLE SYSTEM, AT HOME AS WELL AS ABROAD, DR THE HON HELMUT SOHMEN SAID TODAY (WEDNESDAY).

HOWEVER, HE CAUTIONED THAT WE MUST REMAIN FULLY CONSCIOUS OF THE FACT THAT THE BILL COULD NOT AND WOULD NOT PROVIDE ANY GUARANTEES AGAINST FUTURE FAILURES.

DR SOHMEN WAS SPEAKING AT THE RESUMED DEBATE ON THE BILL IN THE LEGISLATIVE COUNCIL.

HE SAID THE BILL WOULD AT BEST AFFORD SOMEWHAT GREATER PROTECTION FOR DEPOSITORS AND INVESTORS ALIKE.

+1N AN AREA AS COMPLEX, AS FRAGILE, AND AS OPEN TO POTENTIAL ABUSE AS BANKING, SUPERVISION AND REGULATION WILL NEVER BE WHOLLY PERFECT NOR WHOLLY SUCCESSFUL.

+I BELIEVE THE BANKING BILL IN ITS PRESENT FORM WILL AT LEAST GO SOME CONSIDERABLE WAY TO ADDRESSING THE DIFFICULTIES IN A RATIONAL, COMPREHENSIVE AND INTERNATIONALLY ACCEPTED MANNER, + HE ADDED.

HE SAID THE BILL ESSENTIALLY SOUGHT TO PUT TEETH INTO THE SUPERVISORY PROVISIONS OF THE 1964 ACT, AS WELL AS SETTING OBJECTIVE PARAMETERS FOR LENDING, CAPITAL ADEQUACY AND LIQUIDITY.

HE NOTED THAT TO GIVE THE BANKING COMMISSIONER ACCESS TO RELEVANT INFORMATION NOT REQUIRED TO BE PUBLISHED OR SUPPLIED UNDER OTHER LEGISLATION WAS MEANT TO ALLOW THE COMMISSIONER TO IDENTIFY ANY INCIPIENT WEAKNESSES IN THE OWNERSHIP, MANAGEMENT AND BUSINESS OF THE FINANCIAL INSTITUTIONS.

/+SINCE FANKING