XN000022-1990-06-26 — Page 9

TUESDAY, JUNE 26, 1990

WHAT IS BEST FOR "IT IS OUR BELIEF THAT BUSINESSMEN KNOW THEMSELVES AND THAT EXCESSIVE BUREAUCRACY IS COUNTER-PRODUCTIVE.

SEEN NO HAVE

FOR REASON

** FURTHERMORE WE ENTITIES FROM EXTERNAL COMPETITION.

PROTECTING LOCAL

"THIS

APPROACH

OVER THE HAS WORKED WELL.

A HAS DEVELOPED INTO FINANCIAL

SECTOR SERVICES

HE SAID. ECONOMIC GROWTH AND EMPLOYMENT OPPORTUNITIES,

LAST DECADE THE

SOURCE MAJOR

OF

"I

REINFORCED

WHILE MARKET DEVELOPMENTS HAD PROVIDED THE MAIN IMPETUS FOR THE UPSURGE IN FINANCIAL BUSINESS, FINANCIAL DEREGULATION HAD THIS TREND, MR NENDICK SAID.

AND AND

1980S, JAPAN HAD HE POINTED OUT THAT STARTING IN THE EARLY EMBARKED ON A MAJOR PROGRAMME TO LIBERALISE ITS FINANCIAL SECTOR BY SOUTH KOREA MORE RECENTLY, SIMILAR EFFORTS HAD BEEN MADE TAIWAN.

OF THE CONSISTED

OF INTEREST RATE

HAS PRIMARILY DEREGULATION "FINANCIAL RELAXATIONS IN THE CONTROL OF CAPITAL MOVEMENTS, DETERMINATION AND OF FOREIGN ACCESS TO DOMESTIC FINANCIAL MARKETS.

"THESE CHANGES ARE NOW HAVING PROFOUND EFFECTS ACTIVITY IN THE REGION," HE SAID

ON FINANCIAL

IN VARIOUS THE EXPANSION OF

IDENTIFYING SPECIFIC DEVELOPMENTS OF IMPORTANCE FINANCIAL MARKETS OF THE REGION, MR NENDICK SAID BANKING SYSTEMS WAS A MAJOR ONE.

"THIS IS PARTICULARLY MARKED IN THE CASE OF JAPAN, AND SINGAPORE.

HONG KONG

THE ENTRY "IN THE LAST TWO CASES THIS HAS BEEN THE RESULT OF INTO THE MARKET OF FOREIGN OWNED BANKS BUT IN THE FIRST THE GROWTH HAS MAINLY BEEN IN THE BUSINESS OF THE LOCALLY OWNED BANKS.

THE IN

REGION SUGGESTED THAT MR

EXPERIENCE SAID NENDICK

OTHER RATHER THAN ESTABLISHED FINANCIAL CENTRES COMPLEMENTED EACH COMPETED FOR THE SAME BUSINESS.

EXPLAINED HE

THAT WHEN THE JAPAN OFFSHORE ESTABLISHED IN DECEMBER 1986, THERE WERE SOME INITIAL THIS MARKET MIGHT ATTRACT FINANCIAL BUSINESS AWAY FROM CENTRES LIKE HONG KONG AND SINGAPORE.

WAS MARKET WORRIES THAT OTHER ASIAN

"BUT EXPERIENCE IN THE PAST FEW YEARS SUGGESTS IN FACT THAT THE

"I HE SAID. REVERSE HAS HAPPENED,

JAPANESE

FINANCIAL

INSTITUTIONS

HAD TURNED MORE TO AS

OVERSEAS AS INTERNATIONAL BUSINESS THEY HAD EXPANDED THEIR ACTIVITY

HAD BENEFITTED WELL AS AT HOME AND THE OTHER MARKETS IN THE REGION FROM THIS TREND.

/"IT IS