TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 18

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ECONOMIC & FINANCIAL

4.

In reporting on financial and economic matters I should start

off by saying that in this present situation of world recession Hong

But Kong and its economy and its people are faring remarkably well.

this comparative good fortunc has been unevenly spread and is not

reflected in the local mood. There are special reasons for this which

it is important to appreciate and will be mentioned in this address.

Meanwhile a word about financial and commercial legislation.

FINANCIAL & COMMERCIAL LEGISLATION -

5. te

1981 is proving to be a year of reform for our banking and

deposit-taking industry. The Hong Kong Association of Banks has been

incorporated by statute to enable it to play a greater part in the

monetary system of Hong Kong. Steps have been taken to limit the

registration of new deposit-taking companies. The definition of

banking business contained in the Banking Ordinance has been amended;

a new category of financial institution (the licensed deposit-taking

company) has been created; and after a two-year transitional period,

registered deposit-taking companies will no longer be permitted to

accept from the public deposits repayable within 3 months.

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6.

Also this year, the prudential legislation to which banks and

deposit-taking companies are subject has been revised, and new statistical

returns are being received from banks and deposit-taking companies

/under