TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 210

Enclosure VII

FRESS RELEASE

Bank of Credit and Commerce Hong Kong Limited

The Comm:ssiorer of Banking, Mr David Carse, today (Monday) made a further announcement concerning the affairs of the Bank of Credit and Commerce Hong Kong Limited (3CCHK).

Mr Carse said: "The operations of BCCHK are basically sound. However, it has become clear over the weekend that its ability to conduct its business could be impaired by the uncertainties surrounding the rest of the BOC Group. This is so particularly in the absence of a clear statement o: support from BCCHK's ultimate majority shareholder, the Government of Abu Dhabi."

"I am also concerned that, although BCCHK's business was conducted in an orderly fashion, on Saturday, this situation might not continue."

"In these circumstances, I have decided that it would be prudent to suspend the operations of BCCHK to safeguard the interests of depositors generally."

"This wil permit me to pursue my discussions with the Government of Abu Dhabi."

"Accordingly, I have exercised my powers under section 52 of the Bank..ng Ordinance to instruct BCCHK not to open for business today or until further notice."

The Commissioner repeated that the problems of the BCC Group cast no doubts on the Hong Kong banking system which remains healthy and sound.

Note to Editors:

The Comm.ssioner of Banking, Mr David Carse, will hold a press conference at 10:00 a.m. today (Monday) in the Conference Room Office of the Commissioner of Banking, 28th Floor, Queensway Government Offices, Hong Kong.

8 July 1991

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