XN000022-1991-03-15 — Page 10

FRIDAY, MARCH 15, 1991

GOVERNMENT SEEKS TO GIVE NEGATIVE INTEREST RATES STATUTORY BACKING

*

SEEKS

THE HONG KONG ASSOCIATION OF BANKS (AMENDMENT) BILL 1991, WHICH KONG ΤΟ

HONG GIVE STATUTORY BACKING TO THE RULES MADE BY THE

OF ASSOCIATION

BANKS (HKAB) CONCERNING THE IMPOSITION OF DEPOSIT CHARGES, GENERALLY KNOWN AS NEGATIVE INTEREST RATES, IS GAZETTED TODAY (FRIDAY).

"THE RULES ON NEGATIVE INTEREST RATES MADE BY HKAB HAVE PROVED TO BE VERY EFFECTIVE IN DETERRING SPECULATION ON A REVALUATION OF THE HONG KONG DOLLAR IN EARLY 1988", A GOVERNMENT SPOKESMAN SAID.

MADE,

THE HOWEVER,

WERE DOUBTS

SPOKESMAN SAID AT THE TIME WHEN THE RULES WERE EXPRESSED AS TO WHETHER HKAB HAD

THE

NECESSARY

STATUTORY AUTHORITY.

"TO PUT MATTERS BEYOND DOUBT, IT IS CONSIDERED CLARIFY THE POSITION THROUGH APPROPRIATE AMENDMENTS TO HE SAID.

DESIRABLE LEGISLATION,

TO

THE

"IT IS NOT EXPECTED THAT THERE WILL BE A NEED TO IMPLEMENT RULES. BUT IT IS ESSENTIAL THAT THE STATUTORY BACKING OF THE RULES IS PUT BEYOND DOUBT IF THEY ARE TO SERVE AS AN EFFECTIVE AGAINST DESTABILIZING SPECULATION, THE SPOKESMAN SAID.

DETERRENT

THE RULES IN QUESTION ARE THE "SPECIFIED RATE RULE" "RULES

INTEREST ON

RATES AND DEPOSIT CHARGES" RESPECTIVELY IN DECEMBER 1987 AND JANUARY 1988.

MADE

THE AND BY НКАВ

THE

PROPOSED AMENDMENT TO THE HKAB ORDINANCE DOES ANY CHANGE IN EXISTING POLICY.

NOT

ENTAIL

THE

BILL

WILL BE INTRODUCED INTO THE LEGISLATIVE

COUNCIL

ON

APRIL 24.

FOUR NOMINATIONS RECEIVED TODAY FOR UC/RC ELECTIONS

A TOTAL OF FOUR NOMINATIONS FOR THE URBAN COUNCIL AND REGIONAL COUNCIL ELECTIONS IN MAY WERE RECEIVED TODAY (FRIDAY).

TWO WERE FOR THE URBAN COUNCIL ELECTIONS AND TWO REGIONALCOUNCIL ELECTIONS.

FOR THE

THIS BRINGS TO 22 THE

TOTAL

NUMBER OF NOMINATIONS FOR THE

ELECTIONS.

/SO FAR

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