They are collectively known as authorized institutions. Hong Kong has one of the highest concentration of banking institutions in the world. Seventy of the largest list of tier 2 investment banks banks in the world have an operation in Hong Kong.
For more information, see the latest Monthly Statistical Bulletin and Authorization of Authorized Institutions. Licensed Banks Only licensed banks may operate current and savings accounts, and accept deposits of any size and maturity from the public and pay or collect cheques drawn by or paid in by customers. Restricted Licence Banks Restricted licence banks are principally engaged in merchant banking and capital market activities. Deposit-taking Companies Deposit-taking companies are mostly owned by, or otherwise associated with, banks. These companies engage in a range of specialised activities, including consumer finance and securities business.
100,000 or above with an original term of maturity of at least three months. 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 between the bank and its customers in Hong Kong. Authorization of Authorized Institutions The authorization criteria for authorized institutions ensure that only fit and proper institutions are entrusted with public deposits. These criteria are clearly set out in the Seventh Schedule to the Banking Ordinance. Under the Banking Ordinance, the HKMA is the licensing authority responsible for the authorization, suspension and revocation of authorized institutions. To provide checks and balances, the HKMA is required under the Ordinance to consult with the Financial Secretary on important authorization decisions, such as suspension and revocation.