TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 167

intervention.

authority to exercise his powers of

That is why

those powers

have been given by

by the

legislature. Last week we witnessed the exercise of

those powers in relation to the Hong Nin Bank. I

shall not attempt this evening to describe all the

matters that we took into account. We have had some

stick, but by and large the market has understood why

we took action. It was not very dramatic, no more

than that taken earlier with another bank, now in the

hands of new owners and at no cost to the public

purse. My task is to ensure that proper action is

taken in that timely manner that I have mentioned,

and, of course, to ensure as

1

far as I can that the

stability of the banking sector, and indeed of the

community, is not endangered.

8.

Banking is, of course, one of the most

rapidly changing sectors in the developed economies

the world over. Hong Kong is no exception, witnessing

as it has contests between black horses and white

knights. Changes are occurring in terms of products,

customers and competitors, and in terms of the degree

of interdependence of financial markets in different

The interdependence of the various

countries.

financial

services is

speed at

which this

also increasing, although the

happening in Hong Kong is

/probably