XN000022-1989-07-07 — Page 3

FRIDAY, JULY 7, 1989

2

MINIMUM

CAPITAL REFLECT

"CLAUSE 7 ALSO AMENDS SECTION 18 TO RAISE THE LEVEL FOR LICENSED BANKS FROM $100 MILLION TO $150 MILLION TO

LICENSED BANKS, WHICH THE HIGHER CAPITAL REQUIREMENT APPROPRIATE TO

FROM MARCH 10 THIS WOULD ALSO BE GIVEN A GRACE PERIOD OF TWO YEARS YEAR TO MEET THE NEW STANDARD,

HE SAID.

UNDER THE EXISTING

DEPOSIT-TAKING LICENCE

MAY

LEGISLATION,

ONLY BE

AN

FOR APPLICATION

REGISTERED BY A MADR

A

DEPOSIT-TAKING COMPANY.

"THIS REQUIREMENT WILL

BE

REPEALED IN

ACCORDANCE

WITH THE

APPROVED CHANGES," HE SAID.

THE INFORMATION GATHERING POWER OF THE COMMISSIONER OF WILL BE EXTENDED UNDER PROPOSED LEGISLATION.

AUTHORISED

PRESENT

UNDERSTANDING PROPER

THE SPOKESMAN POINTED OUT THAT THE LAW AT COMMISSIONER TO REQUIRE INFORMATION FROM SUCH INFORMATION IS "NECESSARY FOR THE FINANCIAL POSITION OF THE INSTITUTION".

тоо CONSIDERED

DISCHARGE

BANKING

ALLOWS INSTITUTIONS

THE

OF

IF THE

:

RESTRICTIVE

SINCE POWER IN THIS RESPONSIBILITIES

THE

WAS HE NOTED THAT IT COMMISSIONER WOULD NEED TO HAVE RELATIVELY UNFETTERED

HIS STATUTORY IF HE WERE

RESPECT EFFECTIVELY.

то

"THE BILL THEREFORE EMPOWERS THE COMMISSIONER

то ITS SUBSIDIARIES AUTHORISED INSTITUTION OR INFORMATION THAT MAY REASONABLY BE REQUIRED FOR THE FUNCTIONS UNDER THE ORDINANCE," HE SAID.

ΤΟ REQUIRE ANY

ΤΟ SUBMIT

HIM EXERCISE OF HIS

AN ANOMALY IN FROM LENDING EVEN

ANOTHER PROVISION IN THE BILL SEEKS TO REMOVE THE PRESENT LEGISLATION WHICH IN EFFECT PREVENTS A BANK MORE THAN 25 PER CENT OF ITS OWN CAPITAL TO ITS OWN SUBSIDIARIES

THE THOUGH THESE

SUPERVISION.

ARE

SUBJECT

TO

COMMISSIONER'S

CONSOLIDATED

THE PRESENT THE SPOKESMAN SAID: "THIS SITUATION AROSE BECAUSE

EXPOSURE OF AN AUTHORISED LEGISLATION PROVIDES THAT THE FINANCIAL

ARE SUBSIDIARIES OF THE INSTITUTION TO TWO OR MORE COMPANIES WHICH

25 PER SAME HOLDING COMPANY SHALL NOT EXCEED AN AMOUNT EQUIVALENT TO CENT OF THE PAID-UP CAPITAL AND RESERVES OF THE INSTITUTION.

||

THAT AN EXEMPTION INSTITUTION

TO REMOVE THIS ANOMALY, THE BILL PROVIDES MAY BE GRANTED TO AN AUTHORISED INSTITUTION WHERE THE ITSELF THE CONTROLLER OF THE SUBSIDIARIES CONCERNED.

HOWEVER, SUCH AN

SHALL EXEMPTION

BE

SUBJECT APPROVAL BY THE COMMISSIONER AND TO SUCH CONDITIONS AS PROPER TO ATTACH, THE SPOKESMAN CONTINUED.

IS

TO THE HE MAY

PRIOR THINK

/ANOTHER MAJOR

: