TNAG-1649-FCO40-2296-Hong-Kong-Commissioner-of-Banking-s-annual-report-for-1986--1987 — Page 31

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PS/Mr Renton

HONG KONG:

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FROM:

102 17

Mn hayden HKD

РА.

A M Layden

Hong Kong Department 7

DATE: 18 March 1987

Thanks Mimist report not read.

приг

6

COMMISSIONER OF BANKING'S ANNUAL REPORT 1986

1.

the

Under Section 9(1) of the Banking Ordinance,

Commissioner of Banking is required to prepare an annual

report on the workings of the Ordinance and on the activities of his office during the preceding year.

A copy

of the 1986 report which Mr Renton may be interested to

see, is attached.

Summary of the Report

2.

The report is a good descriptive account of recent

developments in Hong Kong's financial system and changes in

the involvement and supervisory role of the Commissioner of

Banking.

In the early chapter of the report the

Commissioner summarises the development of prudential

supervision leading up to the enactment of the Banking

Ordinance in September 1986, the diverse nature of the

banking industry in Hong Kong and the structure and

staffing of the Commissioner's Office.

3.

Of particular interest are chapters 4 and 5 (pages

13-31). In the former, the Commissioner reviews the events

of 1986 including the restructuring of four local "problem"

banks, the further reduction in the size of the registered

deposit-taking company (DTC) sector, the continuing

increase in the number of licensed banks in the territory,

the enactment and entry into operation of the new Banking

Ordinance and the publication of the first set of

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