第一章: The Hong Kong banking¹ system – an introduction 1
第二章 Money, banking and the economy 4
第三章: The Hong Kong banking regulations-capital adequacy and liquidity² ratios, the limitations and restrictions³ of banking practices 5
第四章: International banking- regulatory and market development 7
第五章 financial institutions, the capital and money markets 8
第六章bank clearing system and fund transfer 10
第七章 banking business for the personal sector⁴ 11
第八章 banking services for the business sector 12
第九章 private banking and merchant banking 14
第十章 The banks’ role in international trade 15
第十一章 Financing foreign trade- documentary credits and collections, shipping⁵ terms and documents 17
第十二章 International money transaction 20
第十三章 Foreign exchange 22
第十四章 Basic considerations in granting credit facilities 24
第十五章 Types of advances 25
第十六章 Special types of borrower – the commercial sector 26
第十七章 Securities for lending 28
第十八章 Balance sheet analysis 29
第十九章 Advance control 30
第一章: The Hong Kong banking system – an introduction
l The main features of the three-tier system
The essential feature of the change in the system is that the old categories of the Licensed⁷ Deposit –Taking Companies (LTDS) and the Registered Deposit-taking Companies (RTDS) were replaced by two new categories, the restricted licensed banks (RLBs) replace the LTDS and the deposit taking companies (DTCS) replace the RDCs.
There is no change in respect of Licensed Banks except that the minimum paid-up share capital for locally incorporated banks is increased from HK$100 million to HK$150 million.
The word “bank” or its derivatives⁹ must be qualified¹⁰ by adjectives such as “merchant” or “investment”, so that they are clearly differentiated¹¹ from licensed banks. However, terms such as “commercial “or “retail¹²” are not acceptable.
A RLB incorporated overseas may trade under its corporate⁸ name, even though that name includes the word “bank”(or its derivatives), however, the name must be used immediately in conjunction with the phrase “restricted licensed bank”.

The minimum paid-up shares capital requirement is now HK$25 million instead of HK $10
million as before.
l The implications of the system
Sound overseas banks, even though they do not meet the approval criteria¹³ for a full license⁶, are now allowed to branch into HK as RLBs, as an alternative to setting up a subsidiary here.
1. Direct entry to the tier of RLB is allowed.
2. The status of RLB is superior to that of the LDTC where a RLB is incorporated overseas.
3. Overseas banks are newly –authorized¹⁴ RLBs in branch form are allowed to operate only from offices in one building
4. Local banks traditionally operate in the retail market whereas overseas banks authorized as RLBs are mainly carrying on merchant banking business.
l HK monetary¹⁵ authority:
1. Established in 1 April 1993
2. Merging¹⁶ the office of the Exchanged Fund with the Office of the Commissioner¹⁷ of Banking.
3. Purpose: to maintain the continuity and professionalism in HK’s monetary and reserves management and banking supervision¹⁸, in a way which commands the confidence of the people of HK and the international financial community.
Responsibility:
1. Execution and development of monetary policy
2. Maintenance of exchange rate and monetary stability
3. Development of the debt market in HK
4. Promoting the efficiency, integrity and development of payment and settlement arrangements
5. Managing the assets of the Exchange Fund
6. Prudential supervision of authorized institutions under the Banking Ordinance¹⁹
7. Formulating²⁰ polices relating to banking supervision
8. HKMA is an integral part of the government but is able to employ staff on different terms to those of the civil service to attract personnel of the right caliber²¹, experience and expertise²².
9. HKMA is accountable to Financial Secretary, who is advised by the Exchange Fund Advisory²³ Committee on matters relating to the control of the Exchanged Fund and on the annual budget of the HKMA.

Business scope:
1. Deposits
2. Loans
3. Settlement
4. Guarantees
5. Interbank borrowing and lending
6. Trade in Chinese treasury²⁴ bond
1. Definition of a “banking “in Hong Kong
A bank is a financial intermediary, which provides special types of services relating directlyor indirectly²⁵ to finance. In Hong Kong, the Banking Ordinance defines a “bank” as a company, which carries on “banking business”, and holds a valid²⁶ bank license granted by the HKMA together with the SAR Chief Executive. * Per se 本质上
2. Banking business
Banking business is:
(1) Receiving from the general public money on current deposit, savings²⁷ deposit or other similar account repayable on demand or within less than three months or at call or notice less than three month;
(2) Paying or collecting cheques drawn²⁸ by or paid in by customers.
(3) Providing credit cards or charge cards to customers, give business advice, handle clients’ auto-pay system, transfer money, and provide foreign exchange and other services