Hong Kong Monetary Authority is responsible for governing the three tier banking system of Hong Kong. The main types operating at Hong Kong are deposit taking institutions, the licensed banks, restricted licence banks and deposit taking companies. These are the recognized banks in Hong Kong.
Hong Kong has a diverse banking network, comprising of banks owned by non Hong Kong enterprises. Here are some important statistics:
133 licensed banks on September 2004
42 restricted license banks on September 2004
36 deposit taking companies on September 2004
211 banks having 1295 local branches
186 of these under the proprietorship of concerns from 31 countries
85 local representative offices of foreign banks
The Restricted Licence Banks in Hong Kong offer services in merchant banking and capital market activities. The minimum deposit required to transact with them are five million Hong Kong dollars.
The Deposit Taking Companies in Hong Kong are either associated with banks, or mostly owned by them. They deal in consumer finance and securities business. The maturity periods of their services are never less than three months. The minimum deposit taken by them is a million Hong Kong dollars.
The Local Representative Offices in Hong Kong are mainly involved in establishing and maintaining links between banks and their clients as they are not allowed to perform banking activities on their own.
Hong Kong Exchanges and Clearing is the chief organization of the seventh largest stock market in the world, based on sales which reached a 1.87 trillion US dollars this year. The usual working hours in the Hong Kong stock market is from 10 to 12.30 pm and 2.30 to 4 am based on New York time. In winter transactions come forward by an hour, but the durations stay the same.
The Financial Secretary in Hong Kong performs the following functions:
- makes the budget according to the Chief Executive's agenda at the public address
- sees that policy is complying with the Public Finance Ordinance
- takes stock of earnings and expenditures before the Legislative Council, annually
- gives the annual budget
- drafts budget proposals by the government
- moves appropriation bills