TNAG-2125-FCO40-3032-Banking-situation-in-Hong-Kong-1990 — Page 15

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

H Keswick Esq

Matheson & Co Ltd

3 Lombard Street

London

EC3V 9AQ

Thank you for your letter of 1 May about the difficulty being

experienced by Jardine Fleming & Co in obtaining a full banking licence in Hong Kong.

As you know, decisions on local banking licences are for the

Hong Kong authorities and the Executive Council. But I have looked

very carefully into the matter.

One of the published criteria for obtaining a full banking licence is that local applicants have to be predominantly beneficially owned by Hong Kong interests. I understand that when the Executive Council last considered Jardine Fleming's application,

they considered that this criterion was not clearly met since neither of Jardine Fleming's ultimate parent companies are incorporated in Hong Kong. It would of course be open to Jardine Fleming and Co to apply for a full banking licence in the same way as

þora any other non-Hong Kong institution provided it could meet the usual

size criteria.

مجله

>

However, I, understand that under the revised licencing structure which came into effect on 1 February 1990, Jardine Fleming & Co has now been designated as a restricted licence bank and can

describe itself as a merchant bank. I hope that this will help Jardine Fleming to gain better access to markets both in Hong Kong

and elsewhere.

Jardine Fleming's applications for a full banking licence will

be considered again once the Hong Kong authorities have seen how the

new three tier system operates in practice. In the meantime, I

TICAAH

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