Three draft circulars have already been exposed to the trust industry for comments. The first covers the licensing framework for UITFs. The amendments aim to streamline the approval process for UITFs and make it more risk-based. The second provides a common framework for the conduct of accounts review by trust entities.
One example is the quantitative ceiling on banks’ real estate loans, which was set in 1990 to contain the excessive growth in bank lending to the real estate sector by keeping the growth rate of such loans to a level equal to or below that of total bank lending.