2
MONDAY, APRIL 30, 1990
FROM 92 DENOMINATED IN LOANS IN THAT
"THE RATIO OF HONG KONG DOLLAR LOANS TO DEPOSITS ROSE
DEPOSITS PER CENT IN 1986 TO 117 PER CENT IN 1989 AS HONG KONG DOLLARS HAVE NOT BEEN GROWING AS QUICKLY AS CURRENCY, HE SAID.
MR NICOLLE NOTED HOWEVER THAT THE GROWTH OF DEPOSITS CONTINUED TO KEEP PACE WITH THE GROWTH OF DOMESTIC PRODUCT EXPRESSED IN CURRENT PRICES.
"HONG KONG DOLLAR LOANS NOW ACCOUNTED FOR A OF INSTITUTIONS' TOTAL HONG KONG DOLLAR ASSETS THAN THE PAST DECADE, HE SAID.
HONG KONG DOLLAR KONG'S GROSS HONG
HIGHER PROPORTION AT ANY TIME IN
MR NICOLLE WARNED THAT BANKS SHOULD BE CONSIDERING CAREFULLY THAN WHETHER THEY WOULD WISH TO GO ON INCREASING THEIR LENDING FASTER THEIR DEPOSIT GROWTH.
ΤΟ
KONG DOLLAR DAMPEN LOAN
HE NOTED THAT, SINCE THE REPORT WAS WRITTEN, HONG
RAISED, WHICH WOULD INTEREST RATES HAD BEEN
HELP DEMAND, AND ENCOURAGE THE HOLDING OF HONG KONG DOLLAR DEPOSITS.
IT WAS ALSO IMPORTANT FOR BANKS ΤΟ ENSURE THAT CUSTOMERS BORROWED IN A
ΤΟ THAT IN WHICH THE SOURCE OF REPAYMENTS WOULD ARISE, HE SAID.
CURRENCY MATCHED
HIS
THE
THE REPORT NOTED THAT THE COMMISSIONER HAD HAD TO EXERCISE
ΤΟ
IN POWERS UNDER THE BANKING ORDINANCE DURING 1989
INTERVENE AFFAIRS OF FIVE REGISTERED DEPOSIT-TAKING COMPANIES (THREE CONTINUED FROM 1988).
"MY ACTIONS AROSE MAINLY BECAUSE OF CONCERNS OVER INADEQUATE LOAN SYSTEMS AND SERIOUS SHORTCOMINGS IN MANAGEMENT," HE SAID.
IN ONE CASE, THE RESTRICTIONS WERE EVENTUALLY LIFTED FOLLOWING A CHANGE OF CONTROL. THE OTHER CASES LED
ONE TO REVOCATION, COMPULSORILY, AFTER THE REPAYMENT OF DEPOSITS.
MR NICOLLE SAID HIS OFFICE HAD MADE GOOD PROGRESS IN DEVELOPING THE BROADER APPROACH TO SUPERVISION OUTLINED IN PREVIOUS REPORTS.
"MORE EMPHASIS HAD BEEN PLACED ON OFF-SITE ANALYSIS OF DISCUSSIONS WITH TOP FINANCIAL DATA AND MANAGEMENT INFORMATION, AND
PLANNING AND MANAGEMENT OF THE INSTITUTIONS FOCUSING ON THEIR FUTURE STRATEGIC DIRECTION.
"THE OFFICE WAS GREATLY ENCOURAGED BY THE INDUSTRY'S POSITIVE Response TO THESE DEVELOPMENTS, HE SAID.
||
GENERALLY
THE REPORT ALSO HIGHLIGHTED A NUMBER OF MAJOR SUPERVISORY OF A POLICIES DEVELOPED DURING 1989. THESE INCLUDED THE DEVELOPMENT
A SUPERVISORY FRAMEWORK FOR FOREIGN EXCHANGE RISK AND
GUIDELINE FOR ON MINIMISING INSTITUTIONS
THE RISK OF BEING USED FOR MONEY
LAUNDERING.
/THE REPORT
:
No comments yet.
Private notes are available after approval.