Banking Law in Hong Kong

Banking Law in Hong Kong

Updated on Monday 04th January 2016

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A lot of developments have been applied in the Hong Kong banking industry in the last couple of years. Many innovative banking products for customers have made banking practices more complex. Banks are an important part of the business sector and investors should have a solid understanding of how banks operate. Therefore, it is advisable to ask for counsel from a law firm in Hong Kong, as they have the required expertise concerning banking and this field’s laws and regulations.

General aspects of Hong Kong banking law

Modern banking is regulated by a certain set of laws and regulations that are in a continuous process of evolving. 
Banking and finance law in Hong Kong deals with the main principles of financial and security services law. It comprises both international and local developments from a practical perspective. The areas of banking law demand a deep understanding about sectors such as the following:
  • - electronic banking;
  • - international institutions;
  • - securities, asset finance;
  • - acquisitions and leveraged finance;
  • - international transactions;
  • - project finance and debt capital market.
The banking law in Hong Kong has to deal with two types of relationships:
  • ● between customers and banks;
  • ● between one bank and another.
Our lawyers in Hong Kong can provide you with further information about banking laws and regulations, as well as advice and assistance in any other legal matters.

Rules of Hong Kong banking law

Authorized institutions have to comply with the rules of the Banking Ordinance, which require them to submit periodic returns to the Hong Kong Monetary Authority (HKMA), to maintain capital adequacy and to seek approval for appointing chief executives. The HKMA conducts on-site verifications of individual institutions from time to time.
Banks that operate in the structure of a branch office are not asked to hold capital in Hong Kong and are not therefore subject to capital ratio demands.
Not all financial institutions have the approval of doing the full range of banking business, this depending on the type of license held by the institution. Investment banks and merchant banks for example, fall into the category of restricted license banks
Do not hesitate to contact our Hong Kong law firm for any questions you may have with regard to the banking law and any other legal issues you may encounter. Our lawyers will make sure that you are assisted and properly counseled regardless of the legal problem that you are facing.