The minimum paid-up shares capital requirement is now HK$25 million instead of HK $10
! v' t2 r+ z5 X+ G w! l million as before.% v8 c5 ]( Z: D; ? J) y6 M$ ^
l The implications of the system
) S, u3 W7 \4 b; ~8 f Sound overseas banks, even though they do not meet the approval criteria for a
3 g+ R& Q4 S: ?7 q5 R" u/ Z full license, are now allowed to branch into HK as RLBs, as an alternative to
8 |/ y$ w5 m4 K2 B- L setting up a subsidiary here.
) a/ M5 ]7 D7 n0 d 1. Direct entry to the tier of RLB is allowed.) H% S9 L8 j! @/ ?/ F! q. Z: H7 W& O
2. The status of RLB is superior to that of the LDTC where a RLB is incorporated9 e0 q: C; |% ]) P# @4 f5 F
overseas.) y" u6 k" R7 u) Z, j: ]
3. Overseas banks are newly –authorized RLBs in branch form are allowed to operate only from offices in one2 a' S! v/ \2 l' D2 A
building% y4 i7 Z/ k& w" o
4. Local banks traditionally operate in the retail market whereas overseas
9 b& W# e3 P @( U banks authorized as RLBs are mainly carrying on merchant banking business.
' O$ i4 g: j$ c n$ j# F l HK monetary authority:
9 l+ z# j0 A2 v& Y$ A 1. Established in 1 April 1993- N; p. W9 o- X
2. Merging the office of the Exchanged Fund with the Office of the Commissioner
' [- K8 M; ]7 _9 E1 k of Banking.
* I4 F9 q! r$ C 3. Purpose: to maintain the continuity and professionalism in HK’s monetary and reserves management and banking supervision, in a way which
) r& p9 S4 i' t) ]0 p: p commands the confidence of the people of HK and the international financial' M! E/ t8 u8 D$ Q: O9 {
community.
( S, w: c& |7 b0 L9 | Responsibility:/ C2 t' b3 B& u. h* V4 K
1. Execution and development of monetary policy
( I! a- u Y1 n; Y 2. Maintenance of exchange rate and monetary stability) I3 U2 W( y: v' h7 p( H
3. Development of the debt market in HK
# j' N+ ]& n) R+ G5 y 4. Promoting the efficiency, integrity and development of payment and settlement5 V3 K' J8 a& R$ W; g
arrangements
" H; Z4 k' V$ I1 Z4 ~0 L: j0 G 5. Managing the assets of the Exchange Fund
0 P* ?- U5 j- X( j 6. Prudential supervision of authorized institutions under the Banking Ordinance
- t( r" k9 N+ T4 k: e, a 7. Formulating polices relating to banking supervision. T z, S6 c8 j. M3 u
8. HKMA is an integral part of the government but is able to employ staff on: n/ u0 _+ M. A
different
6 y9 Q- H8 F( |4 }. Q# g9 |, } terms to those of the civil service to attract personnel of the right caliber,
, X* w) t" d2 o' A9 y experience and expertise." {5 o: v5 E+ o* U3 ^" }
9. HKMA is accountable to Financial Secretary, who is advised by the Exchange& ?( e7 F6 X1 [( }9 C
Fund Advisory Committee on matters relating to the control of the Exchanged
$ ~# U; y7 L" P Fund and on the annual budget of the HKMA.
2 I$ I1 I% c: r" P0 l ^( O Business scope:
7 E# Q; u5 \' @) q 1. Deposits
9 ]- D- ^4 T; @/ |" D 2. Loans
u6 T# {& y* ^) k1 v; L; | 3. Settlement
) W) u- y* G2 ?$ P4 x9 Y 4. Guarantees5 f- [6 q: v" X8 {! u
5. Interbank borrowing and lending# O6 g3 z0 N; ^* p& o
6. Trade in Chinese treasury bond
& G4 g/ T8 ?' ]" O% J* Q4 t 1. Definition of a “banking “in Hong Kong
& c- s9 I B- [8 M( v A bank is a financial intermediary, which provides special types of services relating! ~- u# e; j& V( h2 z; U. M
directlyor indirectly to finance. In Hong Kong, the Banking Ordinance defines# S0 S. b! |4 {- t! r
a “bank” as a company, which carries on “banking business”, and holds/ f! Q; b# F/ p1 o! r* k
a valid bank license granted by the HKMA together with the SAR Chief Executive.( B2 _4 s7 r$ x5 n
* Per se 本质上& v4 I$ a$ r2 b2 ? ]* n' [8 l x
2. Banking business) ]# r. y4 I% v' p
Banking business is:
" G+ J3 _' E5 I0 ~ (1) Receiving from the general public money on current deposit, savings deposit* n) G* b c* E
or other similar account repayable on demand or within less than three months$ `1 `" K- Q4 L) l: e
or at call or notice less than three month;1 M6 u+ Z7 h9 @0 s5 V0 \
(2) Paying or collecting cheques drawn by or paid in by customers.
# \5 J, ]2 ^, q! z/ M5 G7 @4 f (3) Providing credit cards or charge cards to customers, give business advice,& R( O6 n$ T5 n1 {* O
handle clients’ auto-pay system, transfer money, and provide foreign exchange and other services. |