TNAG-1724-FCO40-2437-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 340

の

?

-

2 -

بھر

The banking community has expressed serious

present

concern that the disclosure requirement involves the

inclusion of cumbersome and excessive detail in their

annual accounts.

Furthermore, publication could

constitute a breach of the duty of confidentiality owed by

a bank to its customer. Some members of the banking

community are also concerned that foreign banks operating

in Hong Kong, which are not subject to such strict

disclosure requirements, have an unfair advantage over

local institutions.

بھر

In the light of representations received, we

have reviewed the matter and sought the advice of the

Standing Committee on Company Law Reform. We accept the

importance of banking confidentiality, but consider that

in general the principle of disclosure of detailed

information to the public should apply to banks as it

applies to other companies. So the proposed amendments to

section 161B are designed to achieve the primary objective

in relation to the annual accounts of the banks/whilst maintaining the general principle of

disclosure of relevant information to the public.

بھر

Clause 3 of the Bill provides a limited

exemption for authorised financial institutions and their

holding companies from disclosing details of loans to

directors and other officers in their annual accounts.

Instead, the accounts will contain information on the

aggregate figures of such loans. This exemption, however,

does not apply to a loan or guarantee in excess of