XN000022-1989-07-07 — Page 4

3

FRIDAY, JULY 7, 1989

ANOTHER MAJOR AMENDMENT IN THE BILL INVOLVES THE APPEAL SYSTEM.

"IN THE EVENT OF A BREACH OF EITHER THE SPECIFIED CAPITAL ADEQUACY RATIO OR THE SPECIFIED LIQUIDITY RATIO, THE COMMISSIONER MAY, AFTER DISCUSSION WITH THE INSTITUTION, REQUIRE IT TO TAKE SUCH REMEDIAL ACTIONS AS HE CONSIDERS NECESSARY. FAILURE TO COMPLY WITH THE COMMISSIONER'S DIRECTION IS A CRIMINAL OFFENCE.

||

THE SPOKESMAN POINTED OUT THAT CURRENTLY UNDER THE BANKING ORDINANCE, THE INSTITUTION COULD APPEAL TO THE FINANCIAL SECRETARY AGAINST THE COMMISSIONER'S DIRECTION.

"HOWEVER, ELSEWHERE IN THE ORDINANCE, APPEALS AGAINST THE COMMISSIONER'S USE OF HIS POWERS, WHERE NON-COMPLIANCE IS A CRIMINAL OFFENCE, WOULD HAVE TO BE LODGED WITH THE GOVERNOR IN COUNCIL.

"FOR THE SAKE OF CONSISTENCY, AMENDMENTS ARE PROPOSED TO REPLACE THE FINANCIAL SECRETARY WITH THE GOVERNOR IN COUNCIL AS THE APPEAL BODY FOR SUCH APPEALS. NO OTHER CHANGES TO THE APPEAL SYSTEM ARE PROPOSED, HE NOTED.

H

AS THE BANKING

LEGISLATION NOW STANDS, THE REQUIREMENT TO PRESERVE AND AID IN PRESERVING SECRECY APPLIES ONLY TO THOSE SPECIFIED PERSONS PRESENTLY EXERCISING FUNCTIONS UNDER THE BANKING ORDINANCE.

"IT IS CONSIDERED IMPORTANT TO ENSURE THAT ALL THOSE WHO HAVE EXERCISED SUCH FUNCTIONS IN THE PAST BUT DO NOT PRESENTLY DO SO (FOR EXAMPLE RETIRED PUBLIC OFFICERS, PROFESSIONALS AND OTHERS WHOSE CONTRACTS HAVE EXPIRED) ARE SIMILARLY RESTRICTED.

THE

"THE BILL THEREFORE EXTENDS THE SECRECY OBLIGATION TO ALL THOSE WHO HAVE AT ANY TIME OBTAINED RELEVANT INFORMATION IN COURSE OF EXERCISING ANY FUNCTION UNDER THE ORDINANCE, THE SPOKESMAN SAID.

THE BANKING (AMENDMENT)(NO.2) BILL 1989 19 DUE TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JULY 19.

COMMENTS ON ITS PROVISIONS CAN BE SENT ΤΟ THE MONETARY AFFAIRS, ADMIRALTY CENTRE,

II, 24TH OMELCO AT 8 JACKSON ROAD, CENTRAL.

TOWER

SECRETARY FOR FLOOR, OR TO

J

/4