XN000022-1990-04-30 — Page 2

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MONDAY, APRIL 30, 1990

BANKING INDUSTRY CONTINUES TO MAKE SOLID PROGRESS

THE

KONG BANKING

TO CONTINUED

MAKE SOLID THE COMMISSIONER OF BANKING

HONG

INDUSTRY PROGRESS IN 1989, THE ANNUAL REPORT OF FOR 1989 NOTED.

THE REPORT REVIEWS, AMONG OTHER THINGS, SUPERVISORY POLICY BANKING DEVELOPMENTS AND THE WORK OF THE COMMISSIONER'S OFFICE IN PAST YEAR.

AND

THE

ΤΟ RELEASE THE SPEAKING AT A PRESS CONFERENCE TODAY (MONDAY)

HONG KONG REPORT, THE COMMISSIONER OF BANKING, MR TONY NICOLLE, SAID

SET HAD SWITCHED TO THE NEW WORLDWIDE STANDARD CAPITAL ADEQUACY RATIO

THREE YEARS AHEAD OF BY THE BASLE COMMITTEE ON BANKING SUPERVISION THE RECOMMENDED TIMETABLE.

"THE SOUNDNESS OF THE INDUSTRY WAS CLEARLY DEMONSTRATED BY BANKS' ABILITY COMFORTABLY TO MEET THE STANDARD,

THE

HE SAID.

DEVELOPMENT

OF HONG

HE ALSO DREW ATTENTION TO THE CONTINUING KONG AS A BASE OR INTERNATIONAL BANKING,

IN THE NUMBER OF OFFICES REPRESENTATIVE

"IN 1989, THERE WAS A NET INCREASE OF NINE

BANKS LICENSED. THE OVERSEAS

NUMBER OF INCREASED BY EIGHT TO 160, HE SAID.

"

MR NICOLLE NOTED THAT ALREADY THIS YEAR PLEN LICENSED.

TWO MORE BANKS HAVE

CAME

INTO

ON

ΤΟ

HE ADDED THAT THE INTRODUCTION OF THE NEW AUTHORISATION

LICENCE

BANK, WHICH CATEGORY, OF RESTRICTED

KFFECT

WOULD FEBRUARY 1, 1990,

FURTHER ENCOURAGE INTERNATIONAL BANKS ESTABLISH REGIONAL OPERATIONS HERE.

"ONE SUCH LICENCE HAS ALREADY BEEN GRANTED, AND A FURTHER APPLICATIONS ARE BEING CONSIDERED, HE SAID.

FIVE

11ONG

KONG

INTERNATIONAL BUSINESS,

SPECIAL EFFORTS HAVE TO BE MADE NEVERTHELESS,

REMAINS AN ATTRACTIVE AND COMPETITIVE

MR NICOLLE

REFERRING SAID,

TO

го ENSURE PLACE THE

THAT

FOR RAPID

GROWTH IN THE BANKS' OPERATING COSTS.

AND CONTAINING

то KONG'S

HE

EFFICIENCY "IMPROVING

COSTS ARE VITAL MAINTAINING NOT ONLY PROFITABILITY OF THE BANKS, BUT ALSO HONG

WORLD'S MAJOR FINANCIAL CENTRES," ATTRACTIVENESS AS ONE OF THE

THEY

PRC BANKS, ON THE EFFECTS OF THE JUNE EVENTS IN PEKING ON THE ME NICOLLE SAID THAT THE BANKS' POSITION AT YEAR-END SHOWED THAT MORE THAN MADE GOOD THE LOSS OF DEPOSITS SUFFERED DURING THE SUMMER.

COMMENTING ON CHANGES IN THE BANKING SECTOR BALANCE

SEEN A STEADY AND NICOLLE SAID THAT RECENT YEARS HAVE RISK IN THE LOAN TO DEPOSIT RATIOS OF MANY INSTITUTIONS.

MR

SHEET, SIGNIFICANT

/"THE RATIO