What Is a Banking License?

Licensed banks are one of the authorized institutions in Hong Kong. A licensed bank licensed under the Banking Ordinance as amended in 1990 to carry out statutory banking business. The actual paid-up capital must not be less than 150 million Hong Kong dollars, and various types of demand, savings, time deposits, and public deposits of any amount and duration can be accepted. Handle short-term industrial and commercial loans, personal loans, building mortgages, and medium and long-term loans; handle bill discounts and acceptances; collect payments on behalf of agents; handle trusts and letters of credit. Licensed banks must participate in the Hong Kong Association of Banks, and deposit interest rates are subject to the Association of Banks' Interest Rate Agreement. In 1993, there were 172 licensed banks and about 1605 branches in Hong Kong, with total deposit liabilities to customers of HK $ 172.2 billion. In 1995 it increased to 185. ^[1]