XCC (83) 117
Public reaction and publicity
17
This subject is mainly a specialised one for the financial community, who, as noted above, have been There is unlikely to be much reaction from other
consulted. sectors.
18
If Members approve the proposal described in this paper, a fairly detailed press release will be issued, and the text of the proposed amendments will be sent to both the Hong Kong Association of Banks and the Hong Kong Deposit-taking Companies Association.
There will then be a short space of time for representations to be made prior to the earliest possible resumption of the Legislative Council debate on the amendment bills.
OTHER COMMITTEE STAGE AMENDMENTS
19
The Financial Secretary wishes to propose a number of other, minor amendments at the committee stage of the two bills. Two of these take particular account of representations received seeking modifications
(a) the original proposal,. to treat guarantees given by a single customer or customer grouping in the same way as lending to that customer in respect of the limit which a bank or DTC must observe in its exposure to a single customer, should be modified SO as not to apply to guarantees of obligations under hire purchase
sale
(b)
agreements;
or
conditional
the extension of limitations lending by a bank to directors
on
and directors interests to include lending to non-listed companies with a director in common with the bank should not apply in respect of such public statutory
lending to corporations
as
the Financial
Secretary may designate.
20
The change contained in (a) above is advisable in order not to discourage banks or DTCs from seeking the additional security of a guarantee on certain types of lending. The change contained in (b) is designed to allow, for example, the Mass Transit Railway Corporation (MTRC) to
CONFIDENTIAL #2
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