The Hong Kong Monetary Authority is updating and broadening certain market-entry criteria for the domestic banking sector.
Date: May 25, 2012
The Hong Kong Monetary Authority (HKMA) is updating and broadening certain market-entry criteria for the domestic banking sector.
The Banking Ordinance (Amendment of Seventh Schedule) Notice 2012 seeks to remove the present licensing requirement under which an applicant for a bank licence must have total customer deposits of not less than HK$3 billion and total assets of not less than HK$4 billion.
In addition, the Notice also seeks to remove some present impediments which restrict foreign banks from entering the Hong Kong market through the establishment of a locally incorporated subsidiary.
A spokesman for the HKMA said: “Some international financial institutions do not take deposits as part of their normal business. The proposed revisions will allow a broader range of qualified domestic and international institutions to participate in our financial markets, without compromising the stability of Hong Kong’s banking system.”
Subject to the negative vetting of the Notice by the Legislative Council, the amendments will take effect on July 12, 2012.