The Three-tier Banking System

Any corporation hoping to operate a banking business or a business of taking deposits must obtain a licence issued by the HKMA. Hong Kong maintains a three-tier system of deposit-taking institutions, comprising licensed banks, restricted licence banks, and deposit-taking companies. They are classified according to the amount and term of deposits accepted and the nature of the business, and are collectively known as authorized institutions.

Type of Deposit-taking Institutions	Licensed Banks	Restricted Licence Banks	Deposit-taking Companies
Business	Operate current and savings accounts; Accept deposits of any size and maturity from the public; Pay or collect cheques drawn by or paid in by customers; and Use the name “bank” without restriction	Principally engaged in merchant banking and capital market activities; and May take deposits of any maturity of HK$500,000 and above	Mostly owned by, or otherwise associated with, banks; Engage in a range of specialised activities, including consumer finance, commercial lending and securities business; and May take deposits of HK$100,000 or above with an original term of maturity of at least three months
List of Institutions	List of licensed banks	List of restricted licence banks	List of deposit-taking companies

Local Representative Offices

Overseas banks may establish local representative offices in Hong Kong. However, these offices are not allowed to engage in any banking business and their role is confined mainly to liaison work with its customers in Hong Kong.

Addresses of Authorized Institutions and Local Representative Offices

Related Information

inSight Article(s)

Monthly Statistical Bulletin

Other Topics about Banking Regulatory and Supervisory Regime

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Last revision date : 02 September 2024