XN000022-1987-10-28 — Page 6

WEDNESDAY, OCTOBER 28, 1987

BANKING AMENDMENT BILL SUPPORTED

IN

IN THE DYNAMIC ENVIRONMENT OF HONG KONG, IT IS VITAL THAT THE GOVERNMENT SHOULD ACT QUICKLY TO AMEND ANOMALIES IN THE LAW, AND CONSULT FULLY AND OPENLY WITH PROFESSIONALS IN THE RELEVANT FIELD CONSIDERING ANY AMENDMENTS, THE HON DAVID LI SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING DURING THE SECOND READING OF THE BANKING

ON GAZETTED

JUNE 26 (AMENDMENT) BILL 1987, MR LI SAID THE BILL WAS THIS YEAR AND COMMENTS WERE REQUESTED FROM INTERESTED PARTIES.

HE SAID, AMONG OTHERS, THE HONG KONG ASSOCIATION OF MADE A NUMBER OF POINTS.

BANKS HAD

"SOME POINTS HAVE BERN ADOPTED, OTHER QUESTIONS HAVE BEEN PLACE, AND ANSWERED, AND THE RESULT IS AN AMENDMENT BILL SPEEDILY IN SATISFACTORY TO THOSE WHOM THE BILL WILL AFFECT THE MOST."

RELIEF TO DEFINITION

COMMENTING ON THE MAIN POINTS OF THE BILL, MR LI SAID THE

WELCOME AMENDED DEFINITION OF "DEPOSIT" IN CLAUSE 2 WAS A DEPOSIT-TAKING COMPANIES WHICH HAD FOUND THAT THE PRESENT IMPEDED THEIR ACCESS TO THE INTERNATIONAL CAPITAL MARKETS.

OF

"IN ADDITION, EASING RESTRICTIONS ON TRANSFERS

AS A DEPOSIT-TAKING LICENCES SHOULD BE VIEWED

MEASURE TO ASSIST TRANSFER CORPORATE RESTRUCTURES, AND NOT TO OPEN THE DOOR TO MANY NEW REQUESTS,"

MR LI SAID HE WAS PLEASED TO NOTE THAT SECTION 69 OF THE EXISTING ORDINANCE WAS AMENDED BY CLAUSE 14 OF THE BILL AND THE AMENDMENT WOULD LEAD TO A MORE REALISTIC REPORTING REQUIREMENT.

"IN

ONLY FUTURE,

REDUCTIONS OF CAPITAL WILL NEED PRIOR

APPROVAL FROM THE SUPERVISORY AUTHORITIES."

MR LI SAID THAT AS THE CHIEF EXECUTIVE OF A LOCAL BANK, HE NOTED WITH RELIEF THAT THE REQUIREMENTS OF THE COMMISSIONER'S PRIOR

APPOINTED APPROVAL APPLIED ONLY TO THOSE CHIEF EXECUTIVES ENACTMENT OF THE BILL.

AFTER THE

IN CLAUSE 28,

ANY WAY BF

EXEMPTIONS

SEEN AS AN JOCKEY CLUB

"FINALLY, IT SHOULD BE NOTED THAT FROM THE GAMBLING ORDINANCE SHOULD NOT IN INCURSION BY THE FINANCIAL SECTOR INTO THE DOMAIN OF THE OR OF THE FUTURES EXCHANGE.

UNCONTROVERSIAL

MR LI ADDED THAT HE BELIEVED THIS WAS AN WHICH ENJOYED THE SUPPORT OF THE FINANCIAL COMMUNITY.

WINDING UP THE DEBATE, THE FINANCIAL SECRETARY, THE JACOBS, THANKED MR LI FOR HIS SUPPORT OF THE BILL.

BILL

HON PIERS

AMENDMENT

HE SAID HE SHARED THE VIEW OF MR LI THAT THE IF PASSED, WOULD IMPROVE THE WORKING OF THE PRINCIPAL ORDINANCE.

BILL,

"ARISING FROM THE COMMENTS OF THE HONG KONG ASSOCIATION OF BANKS, I SHALL BE MOVING AN AMENDMENT TO CLAUSE 20 OF THE BILL DURING COMMITTEE STAGE, MR JACOBS ADDED.

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