1992-05-12 00:05 G.I.S
P.03
MR CARSE SAID HE WAS CONFIDENT ABOUT HONG KONG'S CONTINUING ROLE AS AN INTERNATIONAL FINANCIAL CENTRE.
"MOST OF THE REVOCATIONS WERE BY DEPOSIT-TAKING COMPANIES, REFLECTING THE CONTINUING RATIONALISATION AND CONSOLIDATION WITHIN THAT SECTOR," HE NOTED.
HR ADDED THAT THERE WAS A CONTINUING FLOW OF FOREIGN BANKS WHO WISHED TO COME TO HONG KONG.
THE RAPID GROWTH OF LENDING FOR RESIDENTIAL SUPERVISORY ATTENTION IN 1991.
HOUSING ATTRACTED
MR CARSE EXPLAINED THAT IT WAS AGAINST THE BACKGROUND OF A HIGHLY ACTIVE RESIDENTIAL HOUSING MARKET THAT HIS OFFICE WROTE TO BANKS IN MAY, AND AGAIN IN NOVEMBER, LAST YEAR TO REMIND THEM OF NEED TO EXERCISE PRUDENCE WHEN LENDING IN A BOUYANT MARKET.
HE COMMENDED THE BANKING INDUSTRY FOR TAKING THE INITIATIVE ITSELF IN NOVEMBER TO REDUCE THE LOAN TO VALUATION RATIO FOR NEW MORTGAGE LOANS TO 70%.
HE WELCOMED THE SLOWING DOWN OF THE GROWTH OF LENDING IN RECENT MONTHS.
HE CAUTIONED, HOWEVER, THAT UNTIL IT BECAME CLEAR THAT CONDITIONS IN THE HOUSING MARKET HAD STABILISED, INSTITUTIONS SHOULD CONTINUE TO EXERCISE RESTRAINT IN THEIR MORTGAGE LENDING.
THE REPORT NOTED THAT THE TREND IN PREVIOUS YEARS OF FOREIGN CURRENCY DEPOSITS GROWING MORE RAPIDLY THAN HONG KONG DOLLAR DEPOSITS WAS REVERSED IN 1991.
MR CARSE BELIEVED THAT THE SWITCH BACK INTO HONG KONG DOLLARS MIGHT HAVE PARTLY REFLECTED THE BUILDING UP OF HONG KONG DOLLAR FUNDS BY INVESTORS IN RESPONSE TO INVESTMENT OPPORTUNITIES IN HONG KONG.
MR CARSE SAID DESPITE THE IMPACT ON SUPERVISORY RESOURCES OF THE CLOSURE OF BCCHK, HIS OFFICE WAS ABLE TO INCREASE THE NUMBER OF OFF-SITE REVIEWS, ON-SITE EXAMINATIONS AND PRUDENTIAL INTERVIEWS.
THE OFFICE AIMS TO FURTHER STRENGTHEN ITS EFFORTS · ON ON-SITE EXAMINATION IN THE COMING YEARS, PARTICULARLY FOR LOCALLY INCORPORATED INSTITUTIONS.
THE STRUCTURE OF THE OFFICE HAS BEEN REORGANISED TO STREAMLINE AND IMPROVE WORK ARRANGEMENTS.
UNDER THE NEW STRUCTURE, INSTITUTIONS WITHIN THE SAME PEER GROUP AND WITH COMMON CHARACTERISTICS HAVE BEEN BROUGHT UNDER COMMON OVERSIGHT.
THE REPORT IS AVAILABLE FROM THE GOVERNMENT PUBLICATIONS SALES CENTRE AT GROUND FLOOR, GPO BUILDING, CONNAUGHT PLACE, CENTRAL AT $23 PER COPY.
NOTE TO EDITORS:
THE COMMISSIONER OF BANKING'S ANNUAL REPORT 1991 WILL BE BOXED.
END/WKW
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