TNAG-1724-FCO40-2437-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 183

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.:

Question 3

Dr Hon Conrad Lam

Punitive interest rates

3.

DR. LAM asked (in Cantonese) :

Question: As the Hong Kong Association of Banks has recently introduced a rule to provide for punitive interest rates for money deposits, and will apply the rule as and when the Association thinks fit after consultation with the Financial Secretary, will Government inform this Council of the pros and cons of adopting punitive interest rates and the impact it will have on Hong Kong?

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FINANCIAL SECRETARY:

Sir,

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10

On 19 December 1987 the Committee of the Hong

which I shall refer to as

Banksythe

Kong Association of Banks "the Association", after

consultation with me, exercised their powers under section

12(1) of the Hong Kong Association of Banks Ordinance and

made a new rule called the "Specified Kate Kule“. This

l

.. Rule provides for the charging of interest on large Hong

Kong dollar balances maintained on the clearing accounts

•

tastet of members of the Association.

7/l.c..

X.

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This Kule by itself does not affect the position

of bank customers, but it is envisaged that banks will

pass on this charge to their customers. In order that

this can be done in an orderly manner, the Committee of

✓ Set the Association were of the opinion that there should be

་་།

uniform practice amongst members of the Association in

relation to the passing on of the charge to customers.

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