XN000022-1989-03-09 — Page 3

THURSDAY, MARCH 9, 1989

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MR NICOLLE SAID THE CHANGES TO BE INTRODUCED WOULD ALSO INCLUDE AN INCREASE IN THE MINIMUM PAID-UP CAPITAL FROM $75 MILLION FOR LOCALLY INCORPORATED LICENSED DEPOSIT-TAKING COMPANIES ΤΟ $100 MILLION FOR RESTRICTED LICENCE BANKS.

"THIS WILL REFLECT THE RESTRICTED LUCKYCE BANKS," HE SAID.

ADDITIONAL

STATUS AND PRIVILEGES OF

'EXISTING LICENSED DEPOSIT-TAKING

COMPANIES, PROVIDED THEIR

CAPITAL MEETS THE NEW MINIMUM REQUIREMENT, WILL BE GRANDFATHERED AS RESTRICTED LICENCE BANKS.

"

RESTRICTION WILL APPLY то LICENCE BANKS AND

THE OFFICERS- IN -ONE-BUILDING OVERSEAS BANKS NEWLY AUTHORISED AS RESTRICTED OPERATING HERF IN SAANUT FORM.

HOWEVER, LOCALLY INCORPORATED RESTRICTED LICENCE BANKS OR EXISTING LICENSED DEPOSIT -TAKING COMPANIES WHICH ARE GRANDFATHERED AS RESTRICTED LICENCE BANKS WILL NOT BE SUBJECT TO SUCH A RESTRICTION.

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MR NICOLLE SAID THE RULES FOR THE NEW CATEGORY OF DEPOSIT-TAKING COMPANY WOULD BE LITTLE CHANGED FROM THOSE APPLICABLE TO REGISTERED DEPOSIT-TAKING COMPANIES AT PRESENT.

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**THE MINIMUM CAPITAL FOR DEPOSIT TAKING COMPANIES WILL, HOWEVER, BE RAISED FROM $10 MILLION TO $25 MILLION TO ADD ASSURANCE THAT ONLY SOUND INSTITUTIONS ARE ENTRUSTED WITH PUBLIC DEPOSITS, HE SAID.

EXISTING REGISTERED DEPOSIT-TAKING COMPANIES (WHICH WILL BE GRANDFATHERED AS DEPOSIT-TAKING COMPANIES) WILL HAVE TWO YEARS IN WHICH TO MEET *THE NEW MINIMUM CAPITAL REQUIREMENT. THE NEW REQUIREMENT WILL. HOWEVER, APPLY TO ANY NEW APPLICANT FOR REGISTRATION AS A DEPOSIT-TAKING COMPANY AFTER TOMORROW (FRIDAY),

MR NICOLLF SAID THE SAME PRUDENTIAL STANDARDS WOULD APPLY BANKS, RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES, BOTH AUTHORISATION AND AS A CONTINUING REQUIREMENT.

TU

ON

TO

IN PARTICULAR, AN APPLICANT FOR DTC AUTHORISATION WILL HAVE SATISFY THE COMMISSIONER OF BANKING THAT IT IS A FIT AND PROPER BODY.

IN DETERMINING WHETHER A BODY IS "FIT AND PROPER" TO TAKE DEPOSITS, THE COMMISSIONER WILL HAVE REGARD TO, INTER ALIA, THE ADEQUACY OF ITS CAPITAL IN RELATION TO ITS BUSINESS) AND HUMAN RESOURCES.

THE AUTHORISATION CRITERIA FOR RESTRICTED LICENCE BANKS WILL BE SIMILAR TO THOSE FOR LICENSED DEPOSIT-TAKING COMPANIES AT PRESENT, EXCEPT THAT IT WILL NOT BE NECESSARY FOR AN INSTITUTION FIRST TO HAVE BEEN A DEPOSIT-TAKING COMPANY BEFORE BECOMING A RESTRICTED LICENCE BANK.

/NEW AUTHORISATIONS