or with a period of call or notice of less than 3 months from
the Hong Kong Association of Banks' interest rate agreement,
This move enables banks to
with effect from 1st March.
compete freely with licensed deposit-taking companies in terms
of interest rates offered on such deposits. Also, in
accordance with the transitional arrangements
up in 1981
(7) for the introduction of the three-tier monetary sector
most registered deposit-taking companies had to run down their
short-term deposit base by the end of June this year to a
level which was no more than 50% of that at the end of June
1981. The statistics were, moreover, affected by the change
in status of one large
large registered deposit-taking company to a
licensed bank in March.
3.5
The value of outstanding negotiable certificates of
deposit issued in Hong Kong continued to increase, from $6,235
million at the end of December 1981 (of which 46% was held by
banks and deposit-taking companies) to $8,910 million at the
end of June 1982 (of which 50% was held by banks
deposit-taking companies).
and
$4,670 million was denominated in
(7)
/ Hong
...
to the Deposit-taking Companies Ordinance to create the new status of licensed deposit-taking company came into operation on 1st July 1981. These provide that as from that date no registered deposit-taking company may take any deposit with an original term to maturity, or period of call or notice, of less than 3 months, except that any deposit-taking company which was registered prior to that date has a transitional period of two years to run down this type of deposit. Thus, from 1st July 1982 such deposits may not exceed 50% of their level on 1st July 1981, and from 1st July 1983 no registered deposit-taking company may hold or take such deposits.
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