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.