TNAG-1487-FCO40-2044-Hong-Kong-banking-Banking-Bill-1986-1986 — Page 203

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can be achieved by unifying the supervision of banks and that of deposit-taking companies. Hence, the Bill clearly indicates that government takes steps to reinforce control and draws up a set of guidelines to ensure a healthy development of the financial sector

in future.

I believe that the Commissioner of Banking should have power in order to effectively supervise the businesses of banks and deposit-taking companies. The new bill which delegates greater power to the Commissioner also gives him more responsibilities. While he must bear responsibility for his work, we must also have faith in the commissioner who is familiar with the local and international banking industries and who has good and close connections in the industry and can be expected to exercise judgment and flexibility in his work and to foresee future development. Naturally, the quality, experience and judgment of the commissioner and his staff will be the crucial elements for effective supervision. If the staff of the Office who are responsible for supervision are inexperienced and do not have sound professional knowledge, there will be cases of abuse of power and even problems of ineffective supervision. The staff of the Office should, therefore, acquire as much professional knowledge in finance as possible and keep close contact with the banking industry in order to have a better understanding of the relationship amongst the financial institutions and the actual situation of their businesses. The Office of the Commissioner of

Banking should continue to make efforts to upgrade the quality of its staff as well as to recruit and train more suitable personnel.

In fact, the amended Banking Bill does not affect the original spirit of the legislation. Instead, it consolidates and maintains the sound operating system of banks and deposit-taking companies. Furthermore, for the sake of a favourable development

of the whole finance industry and the economy, it is particularly

important for the financial industry to exercise greater

self-discipline.

All in all, the bill can be said to be a compact