Sir,
UMELCO
TRANSLATION
DRAFT SPEECH BY HON YEUNG PO-KWAN, CPM,
28.5.1986 LEGISLATIVE COUNCIL
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Banking Bill 1986
JP
Being a member of the Boards of Directors of the Overseas Trust Bank and the Hang Lung Bank, I declare an interest in the Banking Bill.
In order to have a sound banking system in Hong Kong, attention must be given to improving the supervision of banking operations. The closure of banks will not only affect the prosperity and stability of Hong Kong, but also put pressure on the exchange rate of the Hong Kong dollar.
The existing Banking Ordinance was enacted twenty years
The present Banking Bill has been ago and is already outdated. drafted after Government's review of the Banking Ordinance last year. It can be seen that the Bill spells out in detail the sphere of the Commissioner of Banking's powers, the risk-asset ratio of banks and deposit-taking companies, the liquidity ratio, the auditing procedures of banks and deposit-taking companies as well as the relationship between the Commissioner of Banking and auditors, etc. These measures are useful to prudential supervision by the Commissioner.
The new Bill reflects a
different but more timely emphasis in Government's approach to the supervision of banking business - the provisions of the new Bill are more flexible and more dependent on the Commissioner's discretion and profound judgement.
Moreover, better supervision
UMELCO
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