TNAG-1724-FCO40-2437-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 194

MR.

DESMOND LEE

self-regulatory

body for

15

1

Sir, since there is no statutory

deposit-taking

companies,

how

legally enforcible will such negative interest rates be

for the deposit-taking companies?

the

FINANCIAL SECRETARY : Sir, the Deposit-Taking Companies

Association announced yesterday that they supported

introduction of negative interest rates as a measure to

curb speculative activities on a stronger Hong Kong dollar

against the US currency. The Deposit-aking Companies

Association has also indicated

also indicated that they will be issuing

guidelines for their members to follow. It is worth

remembering, Sir, that registered deposit-taking companies

are, in any event, prohibited from accepting deposits

under three months. The only deposit-taking companies

that would be affected are the licenced deposit-taking

le

companies.