The minimum paid-up shares capital requirement is now HK$25 million instead of HK $10
. {" L# S/ c1 b6 [. y million as before.5 }3 ?& B3 m2 [7 g
l The implications of the system
: K+ A- s3 f! o Sound overseas banks, even though they do not meet the approval criteria for a
! U) E8 c( l; J( w! B3 p0 p0 Z full license, are now allowed to branch into HK as RLBs, as an alternative to
8 m( Q6 R) v' t. w. ?! P6 H setting up a subsidiary here.
/ Z- ~7 Q- G3 h0 u+ a 1. Direct entry to the tier of RLB is allowed.
- f0 L$ f h6 _ 2. The status of RLB is superior to that of the LDTC where a RLB is incorporated4 ^) v, n% [- |. S' c. X6 c
overseas.+ d- j$ C% B0 u2 K4 W
3. Overseas banks are newly –authorized RLBs in branch form are allowed to operate only from offices in one7 A, X) S8 f) q( Z5 |) ?) V
building1 B4 I1 s( ^# P3 x* }5 E
4. Local banks traditionally operate in the retail market whereas overseas) Y1 H% Z3 F, T& F- l2 E( }
banks authorized as RLBs are mainly carrying on merchant banking business.- c/ h2 {3 V# X8 a
l HK monetary authority:4 Z/ [! k6 ~8 b( q4 L4 T) k' I% c$ K
1. Established in 1 April 19935 _" |: d! O: L6 |2 R9 \: E: U! ~
2. Merging the office of the Exchanged Fund with the Office of the Commissioner h' o) s; e6 @7 s3 X+ w( q6 `
of Banking.
. w" B3 f9 G+ `& ^1 h* L 3. Purpose: to maintain the continuity and professionalism in HK’s monetary and reserves management and banking supervision, in a way which
& v0 t/ P8 r1 I/ q% [) V6 ^ commands the confidence of the people of HK and the international financial
u( J. Q& G3 e9 W5 `: V community.
, F1 B9 K" x# }! p4 W; M O Responsibility:( T5 A3 b" z7 g, u0 P! {1 F; \* `
1. Execution and development of monetary policy/ ]/ P. f+ R! a+ u4 K: J, H
2. Maintenance of exchange rate and monetary stability- d0 n3 }; T1 T+ _3 l7 P- X
3. Development of the debt market in HK
( i1 D0 M4 c. g' M1 o: q 4. Promoting the efficiency, integrity and development of payment and settlement
# K7 R) o9 V$ h: a$ f arrangements) `( \0 a+ o8 Q5 c3 g* K. U
5. Managing the assets of the Exchange Fund9 e9 k( _" ]& y% F5 w# E
6. Prudential supervision of authorized institutions under the Banking Ordinance
, p* P' R& W T/ {2 n- o 7. Formulating polices relating to banking supervision7 Y0 R2 P0 N) n6 |# ?4 u; o0 y* t' T
8. HKMA is an integral part of the government but is able to employ staff on4 h, h \2 u R; h3 i" d: q( j
different% O* W) H6 Z2 E5 ^7 W
terms to those of the civil service to attract personnel of the right caliber,, v" S( p0 s5 d7 w$ k1 ^
experience and expertise.
) r. V: o4 g2 r& I4 W+ I1 t 9. HKMA is accountable to Financial Secretary, who is advised by the Exchange5 @& q* p. X2 B- O6 c& C
Fund Advisory Committee on matters relating to the control of the Exchanged" ^' i$ o) D+ i8 Y9 [* q
Fund and on the annual budget of the HKMA.% g/ j- }) T2 x( x
Business scope:$ I* d8 g0 ]- F8 W9 l( O$ O M
1. Deposits/ Y1 S! y4 h/ [5 d
2. Loans
5 w3 b4 \3 S9 R 3. Settlement
' z6 ~% ~8 r; M& ]' J o0 { 4. Guarantees$ a3 z, Z8 Q: H8 p* ^) B
5. Interbank borrowing and lending
6 e7 b7 V$ \3 v. a" d6 } 6. Trade in Chinese treasury bond0 B3 V; e) Y+ Y. a6 ]0 u, L
1. Definition of a “banking “in Hong Kong; u6 \$ H+ R3 q: i# [
A bank is a financial intermediary, which provides special types of services relating' Z9 I- o; `9 Z; s0 q# v
directlyor indirectly to finance. In Hong Kong, the Banking Ordinance defines
) G! c4 ~: m& U2 ?5 H+ t a “bank” as a company, which carries on “banking business”, and holds
4 B- @3 ?/ B$ Q a valid bank license granted by the HKMA together with the SAR Chief Executive.: a4 ^1 D, [/ P9 f0 v
* Per se 本质上 w# v* H0 Y& a5 J
2. Banking business
1 _: o4 \# J& ?9 c9 {2 S Banking business is:$ [. w4 v# d$ @
(1) Receiving from the general public money on current deposit, savings deposit6 O$ h0 y6 y4 P
or other similar account repayable on demand or within less than three months: P. l q7 u0 u3 m
or at call or notice less than three month;7 \- O" q0 U8 w$ D; Y7 v
(2) Paying or collecting cheques drawn by or paid in by customers.' U% e& E4 s, ]0 N
(3) Providing credit cards or charge cards to customers, give business advice,
q) B1 m5 V6 h# o; Q% ? handle clients’ auto-pay system, transfer money, and provide foreign exchange and other services. |