TNAG-2464-FCO40-3588-UK-business-interests-in-Hong-Kong-Jardine-Matheson-Holdings-1992 — Page 15

For decision on

29 September 1992

CONFIDENTIAL

Pa

Pu Gordinies

MW2040

XCC(92)152

てて

Copy No. 31

MEMORANDUM FOR EXECUTIVE COUNCIL

REVIEW OF LICENSING CRITERIA FOR BANKS

Mr Mos Mc Fun Wax Store

THE PROBLEM

IF Fx Co agreed this yesterday, it

вест

A decision is needed on the annual review of the criteria for would banking licence applications from foreign banks and locally incorporated to open the

companies.

RECOMMENDATION AND ADVICE SOUGHT

2

It is recommended that the following changes be made -

for foreign bank applicants

(a) the asset size criterion be increased from US$14 billion

to US$16 billion;

(b)

the criteria concerning home supervision and consent by the home authorities be revised as follows -

(i)

(c)

incorporation in countries the supervisory authorities of which (the home authorities) have established, or are actively working to establish, the necessary capability to meet the minimum standards for supervision of international banks recommended by the Basle Committee;

(ii) consent of the home authorities has been obtained for the establishment of a branch in Hong Kong;

for local applicants

the asset and deposit size criteria be increased to HK$5 billion (from HK$2.5 billion) and HK$3.5 billion (from HK$1.75 billion), respectively;

gate for

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ns 30/9

Executive Council

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