TNAG-1266-FCO40-1615-Economic-policy-in-Hong-Kong-1983 — Page 36

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their activities, but it was also made very clear, and

I must stress this, that once information was available

and conditions had improved, consideration would be

given to more comprehensive controls and supervision.

14.

By 1978, there had been substantial improvement

in the international scene, and it was considered that the

time was right for the next step. So in that year, the Deposit- taking Companies Ordinance was amended to require deposit-taking companies to make monthly returns to the Commissioner. This was implemented from end-December 1978. The amendments

made that year also required deposit -taking companies to

comply with a minimum liquidity requirement. This was

implemented, after some further amendment, from 1st January

1980. These changes, and the power given to the Commissioner to inspect deposit-taking companies, reflected the Government's decision to Begin exercising a more positive supervisory role

over these institutions.

15.

In introducing these amendments, the then Financial Secretary was at pains to point out the rationale behind them.

He said that in respect of the financial sector of our economy,

the Government had three responsibilities and I would like to

repeat them here. The first responsibility is to attempt to

protect members of the public against eventualities against

which they cannot be expected to protect themselves. The second responsibility is to attempt to ensure that the financial sector

adequately services the requirements of a growing and developing

economy. The third responsibility is to ensure that the

development of Hong Kong as a financial centre is not unreasonably

constrained. You will note the use of the word attempt in the first

/responsibility...