TNAG-2125-FCO40-3032-Banking-situation-in-Hong-Kong-1990 — Page 6

in the group

XCC (89) 28

21'

With a shared trading name, problems could have knock-on effects on the banking company. The Commissioner of Banking considers it essential that if JF & Co is to become a bank in Hong Kong then, in addition to the supervision of JF & Co, the group must be

be supervised on a consolidated basis (e.g. with respect to credit risks). The JF Group has been

has been consulted and has given the Commissioner unqualified agreement to this approach. (There is additional comfort from the Bank of England's consolidated supervision cf Robert Fleming, though the Commissioner is not relying on this.,

Implications for Other Licensed Deposit-Takers

22

23

There are no other locally incorporated, locally owned licensed deposit-taking companies which meet the minimu total assets and deposits criteria. Most other ldzes are involved in merchant banking, and are foreign-bank-relateċ; they do not share the applicants' problem of status outside Hong Kong to the same extent. They are unlikely to be adversel affected by the grant of banking licences to JF & Co. and

Wardley.

Financial and Staffing

03

The granting of the two banking licences will result in an increase of revenue

of revenue of $410,00 a year. There are DO additional staffing implications.