XN000022-1989-05-31 — Page 34

WEDNESDAY, MAY 31, 1989

32

COMMISSIONER OF BANKING'S ANNUAL REPORT PUBLISHED

*

ITS CONSOLIDATED

POSITION

IN

REAL ECONOMY.

FOR

THE HONG KONG BANKING INDUSTRY 1988, IN LINE WITH A YEAR OF SUBSTANTIAL GROWTH IN THE THIS IS NOTED IN THE ANNUAL REPORT OF THE COMMISSIONER OF BANKING 1988 PUBLISHED TODAY (WEDNESDAY).

A SPEAKING AT RELEASED, THE COMMISSIONER OF

ATTRACTIVENESS OF CONTINUED UNABATED.

PRESS

HONG

AT WHICH CONFERENCE BANKING, MR TONY KONG AS A BASE FOR

THE REPORT SAID NICOLLE, INTERNATIONAL

WAS

THE

BANKS

+

TAKE A CRITICAL "BUT BOTH DOMESTIC AND FOREIGN BANKS NEED TO

IF THEY ARE STRUCTURES

TO MAINTAIN LOOK AT THEIR COST AND LABOUR

ON STATISTICS

EMPLOYEE PROFITABILITY, HE

ADDING THAT CAUTIONED,

THE FIRST TURNOVER IN THE BANKING SECTOR, INCLUDED IN THE REPORT FOR TIME, SHOWED HOW TIGHT THE DEMAND FOR LABOUR HAD BECOME.

FOR TO

BEEN NECESSARY MR NICOLLE SAID THAT, UNLIKE 1987, IT HAD

AFFORDED HIM BY

ORDINANCE THE BANKING HIM TO EXERCISE POWERS

DEPOSIT-TAKING COMPANIES INTERVENE IN THE AFFAIRS OF FOUR REGISTERED IN ORDER TO PROTECT THE INTERESTS OF DEPOSITORS.

"MY ACTIONS AROSE BECAUSE THE

HAD

FAILED

لى

INSTITUTIONS,

TO UNDERTAKE

DESPITE REPEATED CREDIT ADEQUATE RECORDS, AND TO

ADVICE TO THE CONTRARY, APPRAISAL BEFORE MAKING LOANS, TO MAINTAIN ADEQUATE MONITOR AND CONTROL EXPOSURES WITH ADEQUATE THOROUGHNESS,

OF HIS OFFICE ACTIONS THE HE ADDED THAT SATISFACTORY CONCLUSIONS TO THESE FOUR CASES.

THE COMMISSIONER SAID THE YEAR HAD SEEN IN HIS OFFICE'S APPROACH TO SUPERVISION.

"WE HAVE SOUGHT TO INTRODUCE A BROADER

ΤΟ BE PAID TO MORE ATTENTION

INSTITUTIONS' STRATEGIC DIRECTION," HE SAID.

+7

HE SAID.

HAD RESULTED

IN

A SIGNIFICANT CHANGE

'ALLOWS AND

APPROACH WHICH

PLANNING FUTURE

OF AN SEEKING

BOOKS INSTITUTION'S

THIS TO SUPPLEMENT

INFORMATION, AND

"ALTHOUGH THE ON-SITE EXAMINATION REMAINS CENTRAL TO OUR WORK, WE ARE NOW WITH OFF-SITE ANALYSIS OF STATISTICS AND MANAGEMENT WITH IN-DEPTH DISCUSSIONS WITH TOP MANAGEMENT OF INSTITUTIONS.

IT WILL PROVE OFFICE. BUT ALSO

"ONCE THIS APPROACH HAS BEDDED DOWN, I BELIEVE OF GREAT IMPORTANCE AND USEFULNESS, NOT ONLY TO MY TO ALL INSTITUTIONS," HE EXPLAINED.

MR NICOLLE SAID THE CAPITAL ADEQUACY

RATIO, PROVIDED FOR BY

THE BANKING ORDINANCE, HAD COME INTO FORCE ON SEPTEMBER 1, 1988,

IS

THE WITH

TO ASSIST MEAN THAT

RISKS IT

IN THE 19

OF THE RATIO

COMMENSURATE

PREVENTING AN INSTITUTION FROM OVERTRADING BY WHICH I

"ESSENTIALLY,

THE PURPOSE

INSTITUTION'S CAPITAL MUST

BE

UNDERTAKING."

/THE ORDINANCE