XN000022-1995-03-14 — Page 7

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Mrs CHAN Wong-shui Pamela, JP Miss Sally AW Sian, OBE, JP*

Mr John CHAN Cho-chak, CBE, LVO, JP* Chief Executive Officer, Hospital Authority Deputy Secretary for Health and Welfare* Director of Health

Administrator, Hospital Services Department

*New appointees

End/Tuesday, March 14, 1995

Change to interest rate deregulation timetable

The Hong Kong Monetary Authority (HKMA) has decided that the third phase of the deregulation of time deposits governed by the Interest Rate Rules (IRR) should be postponed to allow the HKMA and the Hong Kong Association of Banks (HKAB) more time to assess the impact of the first two phases of deregulation.

The third phase was originally scheduled to take place on April 1 and would have covered HK dollar time deposits fixed for more than 24 hours and up to and including seven days.

"The effects of the deferral on consumers should be put in perspective. Ninety-nine per cent of former IRR time deposits have already been deregulated well ahead of the timetable proposed by the Consumer Council," Deputy Chief Executive (Banking), Mr David Carse, said.

Time deposits covered by the third phase only account for 0.03 per cent of former IRR time deposits.

"It is sensible to be cautious in view of the more difficult external environment faced by banks," Mr Carse explained.