TNAG-1649-FCO40-2296-Hong-Kong-Commissioner-of-Banking-s-annual-report-for-1986--1987 — Page 70

47.

Turning to the new legislation, as might

have been expected for an Ordinance with some

some 150

clauses, a number of largely correctional amendments

are necessary without any change of policy. These

are currently under examination by the Advisory Committees and will be put to the Executive Council

for drafting authority at an early date. Generally, however, the Ordinance seems to be providing

satisfactory framework for a reasonably balanced

form of supervision. The question for 1987 will be

how far we need to change the mixture to meet the

constantly developing financial scene.

a

48.

The Governor in Council examines each year the size criterion taken as a general guide for the acceptance by the Commissioner of applications for

banking licences. As a result of the review in

1986, foreign banks applying for licences in Hong

Kong have to meet the size criterion of assets (less

contra items) of US$14 billion. The Financial

Secretary, however, indicated later that there

might, in special cases, be exceptions to this

criterion.

49.

One of the major changes in 1986 has been

the growth in the importance of mainland China interests in banking in Hong Kong and of the wish of

other interests from China to enter the banking

sector. With 15 banks now under direct control, it

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