XN000022-1988-06-30 — Page 5

THURSDAY, JUNE 30, 1988

TO

SAID,

THE POWERS

ALSO IN CONTRAST

PREVIOUS YEARS, THE REPORT COMMISSIONER WAS NOT REQUIRED TO USE HIS PRINCIPAL SUPERVISORY OF CONTROL UNDER SECTION 52 OF THE ORDINANCE (CONTROL OVER AUTHORISED INSTITUTIONS) OR POWERS UNDER SECTION 31(1) (ENFORCED REGISTRATION).

REVOCATION OF

THE GOVERNOR

IN COUNCIL, OR TO THE

OF REVOCATION OF AUTHORITY

A

THE

NO REPORT WAS MADE TO FINANCIAL SECRETARY CONCERNING LICENSED BANK OR DEPOSIT-TAKING COMPANY.

CONFERENCE TODAY, THE COMMISSIONER OF ABSENCE OF THE USE OF INDICATE THAT THERE WAS AN

PRESS SPEAKING AT A BANKING, MR TONY NICOLLE, STRESSED THAT THE FORMAL POWERS IN 1987 DID NOT ABSENCE OF EFFECTIVE SUPERVISION.

HOWEVER

"A NUMBER OF RECOMMENDATIONS WERE MADE TO INSTITUTIONS ARISING WERE FOLLOWED FROM EXAMINATIONS, OR OTHERWISE. THESE RECOMMENDATIONS UP, AS NECESSARY, IN ORDER TO ENSURE THAT THEY WERE APPROPRIATELY IMPLEMENTED," HE SAID.

•

THE REPORT NOTED THAT THE CAPITAL ADEQUACY REQUIREMENT UNDER PART XVII OF THE BANKING ORDINANCE WAS TO COME INTO EFFECT IN SEPTEMBER 1988, TWO YEARS AFTER ENACTMENT.

SINCE SEPTEMBER 1986, AUTHORISED INSTITUTIONS. INCORPORATED IN HONG KONG HAVE REPORTED THEIR CAPITAL ADEQUACY RATIOS.

AS AT THE END OF 1987, THE GREAT MAJORITY OF A RATIO OVER THE STATUTORY MINIMUM OF FIVE PER CENT.

INSTITUTIONS HAD

COMMENTING ON THESE FIGURES, MR NICOLLE NOTED THAT HE

TO CONFIDENTLY EXPECTED ALL INSTITUTIONS

BE ABOVE THE MINIMUM BY

SEPTEMBER 1988.

THE REPORT NOTED THAT AS AT THE END OF AUTHORISED INSTITUTIONS HAD EXPOSURES TO 42 COUNTRIES DIFFICULTIES. CLAIMS OUTSTANDING AMOUNTED TO $33 PROVISIONS AVERAGED 11 PER CENT FOR ALL BANKS AND DTCS.

DECEMBER 1987 WITH REPAYMENT BILLION, AND

MR NICOLLE SAID THAT IN THE LOCALLY INCORPORATED BANKING

MAIN SECTOR, FOR WHICH HE HAD THE

SUPERVISORY

SUCH RESPONSIBILITY, EXPOSURES

RELATIVELY MODEST AND PROVISIONS WERE UP INTERNATIONAL STANDARDS, MUCH HIGHER THAN THE AVERAGE LEVEL OF 11

CENT.

WERE

TO

PER

HE SAID HIS REPORT EMPHASISED THE IMPORTANCE OF A CLOSE WORKING RELATIONSHIP BETWEEN THE COMMISSIONER'S OFFICE AND AUDITORS.

MEETINGS

AUDITORS, AND

A TOTAL OF 18 TRIPARTITE AUTHORISED INSTITUTIONS, THE IR

WERE HELD DURING THE YEAR.

OFFICE

-

MEETINGS BETWEEN

THE COMMISSIONER'S

/"THESE MEETINGS