XN000022-1993-05-17 — Page 10

MONDAY, MAY 17, 1993

SPEAKING AT A PRESS CONFERENCE, MR CARSE WELCOMED THE FORMATION OF THE HONG KONG MONETARY AUTHORITY WHICH HE DESCRIBED AS AN IMPORTANT MILESTONE IN THE HISTORY OF MONETARY MANAGEMENT IN HONG KONG.

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MR CARSE POINTED OUT THAT ALTHOUGH THE OUTLOOK FOR TIL RANKING

! 1993 REMAINED FAVOURABLE, INSTITUTIONS SHOULD MAT ONTROL ON OPERATING EXPENSES AND ON CREDIT STANDARDS INGRENS

+

BAD DEBT PROVISIONS.

LAST YEAR THE COMMISSIONER OF BANKING TOOK FURTHER SH A SUPERVISORY FRAMEWORK WHICH WAS FULLY IN INTERNATIONAL STANDARDS.

NEW LEGISLATION WAS ENACTED TO PROVIDE ENHANCED COMMISSION REPORTS FROM AUDITORS ON VARIOUS ASPECTS OF INSTITUTIONS' INTERNAL CONTROL SYSTEMS.

TO

STEPS ΤΟ LINE WITH

POWERS TO AUTHORISED

IN ADDITION, THE AUTHORISATION CRITERIA FOR ALL THREE CATEGORIES OF AUTHORISED INSTITUTIONS WERE REVISED TO INCORPORATE THE MINIMUM STANDARDS FOR SUPERVISION. OF INTERNATIONAL BANKS AS RECOMMENDED BY THE BASLE COMMITTEE.

MR CARSE NOTED THAT A NUMBER OF PORFIGN RANKS CONTINUED SHOW STRONG INTEREST IN COMING TO HONG KONG.

TO

"THE INCREASING ROLE OF HONG KONG AS A CHANNEL FOR THE TRADE AND FINANCIAL FLOWS BETWEEN CHINA AND THE REST OF THE WORLD HAVE FURTHER STRENGTHENED ITS POSITION AS AN INTERNATIONAL FINANCIAL CENTRE," HE SAID.

IN 1992, FIVE BANKING LICENCES AND FOUR RESTRICTED BANKING LICENCES WERE GRANTED. A'T THE SANF TIME. THERE WAS CONTINUED RATIONALISATION IN THE DEPOSIT-TAKING COMPANIES SKOTOR,

THE

MR CARSE ALSO DESCRIBED THE EFFORTS OF THE COMMISSIONER'S OFFICE TO PERSUADE ALL AUTHOR ESED INSTITUTIONS. TO OBSERVE VOLUNTARY 70 PER CENT LOAN TO VALUATION RATIO FOR RESIDENTIAL MORTGAGES.

"REFLECTING THIS, THE RATE OF GROWTIE IN MORTGAGE LENDING KASED DURING THE YEAR,

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"HOWEVER, INSTITUTIONS WERE ADVISED NOT TO RELAX THEIR CAUTIOUS LENDING STANCE SO AS TO AVOID A RESURGENCE OF SPECULATIVE ACTIVITIES, HE SAID.

ON THE LIQUIDATION OF THE BANK OF CREDIT AND COMMERCE HONG KONG LTD, MR CARSE NOTED THAT A SCHEME OF ARRANGEMENT WAS APPROVED IN SEPTEMBER 1992 WHEREBY ALL SMALL DEPOSITORS, OWED $100,000 OR LESS, WOULD BE PAID IN FULL..

LARGE CREDITORS WOULD RANK FOR DIVIDENDS THROUGHOUT THE

LIQUIDATION,

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"THE AMOUNT OF THE FINAL DIVIDEND, WHICH HAS BEEN ESTIMATED 70 PER CENT 75 PER CENT, COMPARES FAVOURABLY WITH THE RET PA BANK OF CREDIT AND COMMERCE DEPOSITORS ELSEWHERE,

FF HE SAID.

AT

20

/HE NOTED

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