XN000022-1993-01-12 — Page 16

15

TUESDAY, JANUARY 12, 1993

BANK OF CHINA TO ISSUE BANK NOTES

THE BANK OF CHINA (BOC) IS EXPECTED TO BECOME THE THIRD NOTE→ ISSUING BANK IN HONG KONG IN 1994, A GOVERNMENT SPOKESMAN ANNOUNCED TODAY (TUESDAY).

THE GOVERNOR IN COUNCIL HAS DECIDED THAT APPROVAL SHOULD BE GIVEN FOR THE BOC TO START ISSUING BANK NOTES FROM MAY 1994, SUBJECT TO THE ENACTMENT OF NECESSARY LEGISLATIVE AMENDMENTS.

THE SPOKESMAN SAID: "AFTER THE BOC EXPRESSED AN INTEREST то BECOME A NOTE ISSUER, THE OFFICE OF EXCHANGE FUND HELD A SERIES OF TECHNICAL DISCUSSIONS WITH THE BOC TO ASSESS WHETHER THE LATTER WAS CAPABLE OF MEETING ALL THE REQUIREMENTS TO BE MET BY A BANK.

NOTE-ISSUING

ABLE

"THE GOVERNMENT IS SATISFIED THAT THE BOC IS PREPARED AND TO MEET THE TECHNICAL REQUIREMENTS TO BECOME A NOTE-ISSUING BANK, AND THAT HONG KONG CAN ACCOMMODATE AN ADDITIONAL BANK WITHOUT CAUSING CONFUSION IN THE CURRENCY."

NOTE-ISSUER

NOTE-ISSUER,

THE SPOKESMAN SAID TO ENABLE THE BOC TO BECOME A IT WOULD BE NECESSARY TO AMEND THE BANK NOTES ISSUE ORDINANCE AND THE EXCHANGE FUND ORDINANCE.

HE SAID THE BOC HAD ESTIMATED THAT, AFTER ALLOWING FOR TIME TO SECURE THE NECESSARY LEGISLATIVE AMENDMENTS, IT COULD COMPLETE THE NECESSARY ADMINISTRATIVE AND LOGISTICAL ARRANGEMENTS AND THE DESIGN AND PRODUCTION OF THE NOTES FOR NOTE-ISSUE TO BEGIN IN MAY 1994.

IT IS THE PLAN OF THE BOC TO ISSUE IN 1994 SOME $6 BILLION BANK NOTES (ABOUT 10 PER CENT OF THE VALUE OF TOTAL BANK NOTES IN CIRCULATION), AND TO INCREASE THE AMOUNT GRADUALLY ΤΟ ABOUT $10 BILLION BY 1996.

THE SPOKESMAN FURTHER NOTED THAT THE BOC WOULD SUBMIT THE DESIGN FOR ITS BANK NOTES TO THE GOVERNMENT FOR APPROVAL. HOWEVER, THE SIZE AND COLOUR OF ITS BANK NOTES WOULD BE SIMILAR TO THOSE ISSUED BY THE EXISTING NOTE-ISSUING BANKS,

THE BOC GROUP CURRENTLY OPERATES OVER 300 BRANCHES AND AUTOMATIC TELLER MACHINES THROUGHOUT THE TERRITORY.

/16

250