XN000022-1987-07-31 — Page 4

FRIDAY, JULY 31, 1987

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BANK OF NEW ZEALAND GRANTED LICENCE

THE BANK OF NEW ZEALAND HAS BEEN GRANTED A BANKING LICENCE ΤΟ CONDUCT BUSINESS IN HONG KONG, A GOVERNMENT SPOKESMAN SAID TODAY (FRIDAY).

BANK OF NEW ZEALAND, INCORPORATED IN 1861, IS THE LARGEST BANK IN NEW ZEALAND AND IS OWNED BY THE NEW ZEALAND GOVERNMENT. IT HAS MAINTAINED A REPRESENTATIVE OFFICE IN HONG KONG SINCE 1984 AND A WHOLLY-OWNED REGISTERED DEPOSIT-TAKING COMPANY SINCE MARCH 1986.

THE SPOKESMAN SAID THAT THE BANK OF NEW ZEALAND'S APPLICATION HAD BEEN APPROVED EVEN THOUGH THE BANK DID NOT MEET THE CURRENT ASSET REQUIREMENT OF U.S.$14 BILLION.

HE POINTED OUT THAT THE LICENSING POLICY FOR BANKS INCORPORATED OUTSIDE HONG KONG HLAD RECENTLY BEEN REVISED, AS ANNOUNCED BY THE FINANCIAL SECRETARY IN THE LEGISLATIVE COUNCIL ON MARCH 11, 1987, SO THAT APPLICATIONS FROM BANKS WHICH DO NOT MEET THE U.S.$14 BILLION ASSET REQUIREMENT MAY ALSO BE ACCEPTED WHERE:

(T) THE APPLICANT IS OF UNDOUBTED STANDING; AND

(11) GRANTING A LICENCE ΤΟ THE APPLICANT WOULD SERVE HONG KONG'S INTEREST AS A BROAD-BASED INTERNATIONAL FINANCIAL CENTRE TAKING ACCOUNT OF THE REPRESENTATION IN HONG KONG BY BANKS FROM THE APPLICANT BANK'S COUNTRY.

IN THE CASE OF THE BANK OF NEW ZEALAND, IT WAS CONSIDERED THAT A LICENCE SHOULD BE GRANTED AS THE BANK IS OF UNDOUBTED STANDING AND BECAUSE THE PRESENCE OF A NEW ZEALAND BANK IN HONG KONG WOULD ENHANCE HONG KONG'S IMAGE AS A BROAD-BASED INTERNATIONAL FINANCIAL CENTRE.

"IT IS ALSO LIKELY TO LEAD TO INCREASED LEVELS OF TRADE AND INVESTMENT BETWEEN HONG KONG AND NEW ZEALAND, HE SAID.

THE SPOKESMAN ADDED THAT THIS IS THE FIRST BANKING BE GRANTED TO A BANK FROM NEW ZEALAND. THE TOTAL NUMBER OF NEW BANKING LICENCES GRANTED SO FAR THIS YEAR 13 FIVE. THE TOTAL SUMBER OF LICENSED BANKS IN HONG KONG NOW STANDS AT 155.

LICENCE

TO

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