Fri, Jan 07, 2000 - Page 17 News List

Looser bank rules closer to adoption

DEREGULATION The rules, modeled after recent US banking law changes, would permit banks to invest in firms such as securities and insurance companies

By Stanley Chou  /  STAFF REPORTER

As a result, Yin disagrees with the passage of the amendment in its current form; rather, it should come with a "full package of regulations to prevent the loopholes."

"The timing of this amendment is also questionable," said another banking analyst, who declined to be named.

The appendage of the amendment to the draft Banking Law at such a late stage in its passage through the Legislature is a rare procedure in the legislative process, the analyst said.

"This amendment is highly beneficial to commercial banks, which constitute a powerful industry with a large number of employees," he said.

As a result, the amendment could be yet another ticket for the ruling party in the presidential election to be held in March, the analyst said. "It could certainly win the strong support of the banking industry in this election," he said.

At the same time, he said, "If the ruling party were to lose the election, all the problems generated by this amendment would be somebody else's problem."

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