XN000022-1991-08-10 — Page 2

SATURDAY, AUGUST 10, 1991

BANKING SYSTEM IS SOUND: ACTING GOVERNOR

* * * * *

(SATURDAY)

THE ACTING GOVERNOR, SIR DAVID FORD, TODAY REASSURED THE PUBLIC THAT THE BANKING SYSTEM IS SOUND AND THAT THE GOVERNMENT STOOD FIRMLY IN SUPPORT OF IT.

"IT IS VERY CLEAR TO US," SIR DAVID SAID, "THAT RECENT PROBLEMS AT CITIBANK AND THE CHARTERED BANK NOTHING MORE. THESE RUMOURS, WHETHER THEY HAVE STARTED OR ELSEWHERE, HAVE PROVED TO BE BASELESS.

THE CAUSE OF 15 RUMOUR AND IN HONG KONG

RESPONDED IS A

"THE WAY THE BANKING SECTOR AS A WHOLE HAS CLEAR INDICATION OF THE SOUNDNESS OF THE SYSTEM AND WE IN THE GOVERNMENT STAND FULLY BEHIND IT. SHOULD THE NEED ARISE THE EXCHANGE FUND IS THERE TO GIVE THE NECESSARY SUPPORT.

SIR DAVID SAID HE HAD ASKED INVESTIGATION INTO THE SPREADING OF BANKS IN HONG KONG.

THE POLICE ΤΟ CONDUCT A FULL FALSE RUMOURS ABOUT INDIVIDUAL

"SCAREMONGERING HURTS ORDINARY PEOPLE, HE SAID.

"WE DO NOT KNOW WHO IS DOING IT OR WHY, BUT WE INTEND ΤΟ GET TO THE ROOT OF IT, AND BRING WHOEVER IS RESPONSIBLE ΤΟ воок. I UNDERSTAND THE ANXIETY THAT PEOPLE FEEL. AND I CAN REASSURE THEM THESE RUMOURS ARE WITHOUT FOUNDATION.

THAT

NENDICK MEETS BCCHK DEPOSITORS' REPRESENTATIVES

MR DAVID NENDICK, TODAY THE SECRETARY FOR MONETARY AFFAIRS, (SATURDAY) HAD A MEETING WITH A SMALL GROUP OF REPRESENTATIVES OF THE

OF CREDIT AND COMMERCE HONG DEPOSITORS OF THE BANK

KONG LIMITED

(BCCHK).

WHAT APPEARED AIMED AT HAD MADE HAD

IN REFERRING TO HIS REMARKS YESTERDAY REGARDING

MONGERING TO BE AN

CAMPAIGN OF RUMOUR ORCHESTRATED DESTABLISING CERTAIN BANKS IN HONG KONG, MR NENDICK SAID HE IT CLEAR THAT, AS YET, THERE WAS NO HARD EVIDENCE TO INDICATE WHO STARTED THESE RUMOURS.

HE

EXPLAINED

ΤΟ

THE REPRESENTATIVES

THE

THAT

SPECULATING OF BCCHK,

OF SUCH

IN WHETHER THIS MIGHT HAVE INVOLVED SOME MISGUIDED DEPOSITORS HE HAD NOT

то INTENDED

BEHAVIOUR GENERAL

DEPOSITORS.

CRITICISE

"IF THERE WERE DISRUPTIVE

AT ELEMENTS

WORK, THIS ++ HE SAID.

WOULD BE

CONFINED TO A VERY SMALL MINORITY OF INDIVIDUALS,

/"THE VAST