CONFIDENTIAL
2
5.
Kong is
In the situation when a licensed bank in Hong experiencing problems affecting its solvency,
there is no,
and there cannot be, clear cut lender of
last resort policy. "Each case is different and must
be handled on an ad hoc basis". These were the exact
words used by the then Financial Secretary Sir John Bremridge on 9 April 1986 in a speech in the Legislative Council concerning Exchange
Exchange Fund and banking issues.
The Government's attitude remains the
remains the same and it will
be useful to have the relevant excerpt repeated here:
"Each case is different and
and must be handled
on an ad hoc basis. No banker and certainly
no shareholder in a local bank should be
lulled into an imprudent belief that if he gets into trouble Exchange Fund support is
inevitable. A judgement must be made in
each case, and it is the interests of
depositors, not those of shareholders,
directors ΟΙ managers of banks which must take priority. This judgement also has to take into account possible ripple effects.
One day and the sooner the better · there
will not be support for a small bank in trouble. We will be ruthless in this regard
provided that it does not result in serious
damage to the prosperity and stability of
Hong Kong. We have all along taken this approach to the problems of DTC's.
There is ΠΟ precedent. Each case stands
on its own. My message is clear and will
I hope be understood.'
督导
CONFIDENTIAL
P.4
Page 45Page 46
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