C502
BANKING (AMENDMENT) BILL 1987
Commissioner may permit a bank to grant financial facilities specified section 83(3) of the principal Ordinance to any person or body specified section 83(4)(g) of the principal Ordinance without complying with the limi specified in section 83(1) of the principal Ordinance in respect of such facilities. Any such permission will be by notice in writing and may be subject to conditions imposed by the Commissioner.
13. Clause 22(d) amends section 84 of the principal Ordinance by inserting new subsections (6A) and (6B). The new subsections give the Commissioner the same power in respect of licensed or registered deposit- taking companies as he is given in respect of banks under new sec- tion 83(4A) at clause 21(c).
14. Clause 24(b) amends section 92 of the principal Ordinance by inserting a new subsection (6). The new subsection provides that section 92 will not apply to any advertisement, invitation or document to the extent that it relates to the taking of any deposit exempted, by virtue of section 3(1) or (2) of the principal Ordinance, from Part III of the principal Ordinance.
15. Clause 26 amends section 120(1) of the principal Ordinance to clarify that the persons to whom that section applies are specified in sec- tion 120(2) of the principal Ordinance.
16. Clause 27 amends section 129(1) of the principal Ordinance to clarify that a contravention of a prohibition in the repealed Banking Ordinance or the repealed Deposit-taking Companies Ordinance on the entering into of any contract does not render that contract unenforceable.
17. Clause 28 amends the principal Ordinance by inserting a new section 137A. New section 137A(I) provides that the Gambling Ordinance (Cap. 148) shall not apply to any transaction proposed to be entered into, or entered into, by an authorized institution. It is considered that there may be doubt as to whether certain financial services offered by authorized institutions breach the Gambling Ordinance. (For example, forward foreign exchange contracts and futures contracts). It is considered that new section 137A(2) and the regulatory powers presently available under the principal Ordinance are sufficient to prevent any abuse of the exemption. A provision similar to new section 137A(1) exists at section 116 of the Commodities Trading Ordinance (Cap. 250).
18. Clause 29 amends the principal Ordinance by inserting a new section 148A. The new section provides for transitional provisions inadver- tently left out of Part XXII of the principal Ordinance.
19. Clause 31 repeals section 4A of the Exchange Fund Ordinance (Cap. 66). That section applies certain provisions of the repealed Banking Ordinance to short term bank deposits of the Exchange Fund. It is repealed because it is overtaken by the amendment made by clause 30 to the definition of "relevant bank" in paragraph 1 at the Fourth Schedule to the principal Ordinance.
20. The Bill has no public expenditure or Public Service staffing implications.
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