TNAG-1649-FCO40-2296-Hong-Kong-Commissioner-of-Banking-s-annual-report-for-1986--1987 — Page 60

this legitimate business. However, all deposit- taking companies were informed that where there was

evidence of deposit-taking companies controlling

remittances to banks abroad in a manner which could

be construed as an arrangement under the then

Section 26 of the Ordinance, prosecution would

follow. Future examinations will watch very care-

fully for evidence of these types of transaction.

32.

were

Under this

Arising out of case work there discussions about deposit-taking companies with the

supervisors in the Philippines, Indonesia, Thailand

and Macau. Close liaison was also maintained with

the other main banking supervisors notably the United States, Japan and the United Kingdom. This

consultation is of vital importance given the

international nature of banking in Hong

Hong Kong

Kong and

also because of the international understanding

regarding consolidated supervision.

understanding, the Commissioner is responsible, in

effect, to the other supervisors for the operation

of Hong Kong banks or deposit-taking companies in their territories. Apart from this international

responsibility, the case of the Overseas Trust Bank

demonstrates the need for the Commissioner to be

fully aware of the activities overseas of the banks

for which he has the prime responsibility, parti-

cularly towards depositors. During the year, a full

programme of examinations was begun to give a

consolidated view of Hong Kong banks with overseas

branches. This work will be further developed in

1987.

17

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