XCC (89)28
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Though neither parent is now Hong Kong incorporated, JF & Co. and the Group, as an entity, has its headquarters and its principal operations here. Internationally it is seen as a Hong Kong group, with the benefits of the banking link to Robert Fleming as secondary. If Hong Kong is not the home of JF & Co. (and of the JF group), then it has no home anywhere. The application is not considered an attempt by Robert Fleming to obtain a full licence by the back door.
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The Commissioner of Banking thus recommends that the application should not be rejected on Hong Kong ownership grounds. The group has enhanced the financial status of Hong Kong and is well managed. It has been a financial innovator and a useful foreign exchange earner in the region. It would thus be in the general interests of Hong Kong to help to
sustain that success.
Wardley: Ownership by a Licensed Bank
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Wardley, as a subsidiary of HSBC, does not meet the requirement that an applicant should not be a subsidiary licensed bank. Subject ここ he proviso set cut Commissioner of Banking recommends that the criterion
in mais instance.
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eived
This criterion was proposed by the Administration in 1981 when the current licensing criteria were adopted. The rationale for its inclusion then was that "there seems reason to permit any bank ==
to increase the number c banking licences it holds within its group" and "many deposit-taking companies (which are subsidiaries of a licensed bank) will not wish to obtain a banking licence (on interest raze considerations)". No further justification was given. It is considered that this criterion should now be reviewed, given the changing circumstances in the banking sector. The Governor in Council has full discretion to waive this administrative criterion in appropriate cases if it so desires.
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Since 1981, the nature of banking has broadened, and some Hong Kong dtcs, such as Wardley and JF & Co have developed particular niches for themselves in the banking sector. It is thus reasonable to consider exceptions to this criterion on a case by case basis; otherwise a bank-owned dtc would be unable to progress to becoming a fully-fledged bank in its particular
market.
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banks:
be
ES3C at present conazols three licensed Hong Kong
and viz., Hang Seng 3ank, Hayfoong Finance,
ng On Bank. HSBC could apply for one of these licences ここ transferred to Wardley, in exchange for a deposi licence. ESBC has however zade
clear that a.
Licences
continue
to
ba
required
and are
noc
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