1990-05-17 15:33 BANK OF ENGLAND INT
DIVN
44 1 601 9561 P.05
E
Deposit-taking companies
3.5
In addition, where an rlb is incorporated overseas, it may trade under its corporate name, ever though that name in- cludes the word “bank” (or its derivatives) in any language. Where this is the case, the name must be used in Hong Kong in imme- diate conjunction with the phrase "restricted licence bank" in equal prominence. Rlbs incorporated in Hong Kong do not have this privilege; the word “bank" cannot be included in their corporate
names.
3.6
The minimum paid-up capital requirement for ribs is $100 mn. This replaces a requirement for idtes of $75mn, which had been in effect since 1981. Ldics, all of which have been grandfathered as ribs, have until 10 March 1991 to meet the new minimum.
3.7
Overseas banks newly authorised as ribs in branch form are allowed to operate only from offices in one building (as is the case with newly licensed banks incorporated overseas). However, locally incorporated companies, or existing ldtes which are branches and grandfathered as ribs are not subject to this restriction, though the Commissioner's approval is still required before a new branch office can be established.
3.8
The criteria for licensing are set out in annex B. They are broadly similar to those which previously applied to idics, except that it is not now necessary for an institution to have been a dic before becoming an rib.
Bank licensing policy
3.10
3.9
The rules applying to dics are little changed from those previously applicable to rdics. The new minimum capital requirement of $25 mn for dics replaces the former minimum capital requirement of $10 mn for rdtcs, which had been in effect since 1981. It applied to new registrations as from 10 March 1989 (when the increase was gazetted); dics registered before then have until 10 March 1991 to reach the new minimum. The criteria for registration are set out in annex B.
Bank licences are granted by the Governor in Council. Licensing policy was again reviewed by the Council during the year. No change was made, the Council considering that the minimum total assets (net of contra items) requirement for banks incorporated overseas should remain at US$14 bn.
3.11
The requirements for locally incorporated applicants were also reviewed. Again, the Council considered that there was no present need for change, particularly in view of the then imminent changes to the three tier structure (see above). It was thought that any alteration to the criteria should be made only after experience of the new authorisation category of ribs had been assessed.
10
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