Bank market entry criteria revised

May 16, 2012

The Banking Ordinance (Amendment of Seventh Schedule) Notice 2012, which seeks to update market entry criteria for Hong Kong's banking sector, will be gazetted on Friday.
 
The Financial Services & the Treasury Bureau said these amendments seek to remove from the Banking Ordinance certain licensing criteria for banks, which have become unnecessarily restrictive.

 
The notice seeks to remove the requirement for a bank licence applicant to have total customer deposits of not less than $3 billion and total assets of not less than $4 billion.
 
It also seeks to remove some impediments which restrict foreign banks from entering the Hong Kong market through the establishment of a locally incorporated subsidiary.
 
The Monetary Authority said 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.
 
The notice will be submitted to the Legislative Council on May 23 and the amendments will take effect on July 12.