List of Licensed Banks in Hong Kong

Hong Kong's well-earned reputation as a prominent hub for banking and finance is supported by its thriving economy, favorable regulatory environment, and strategic location, which have attracted some of the world's largest and most influential banks.

This article delves into the largest banks in Hong Kong, offering valuable insights into their operations, services, and contributions to the region's financial sector. Hong Kong's largest banks play a crucial role in supporting businesses, investments, and trade, facilitating economic growth and development on both regional and international scales.

Regulatory framework

The Hong Kong Monetary Authority (HKMA) plays a role in ensuring the stability and integrity of Hong Kong's banking system. As the primary regulator, the HKMA supervises licensed banks to maintain a robust financial sector. It oversees the implementation of prudent risk management practices, monitors systemic risks, and ensures that banks comply with local and international standards, including Basel III requirements.

The HKMA’s responsibilities also include fostering the efficiency and development of the banking sector, managing Hong Kong’s Exchange Fund, and safeguarding the stability of the Hong Kong Dollar.

The Banking Ordinance (Cap. 155) is the core legislative framework that governs banking operations in Hong Kong. It provides the legal structure for the licensing, supervision, and regulation of banks, with the overarching aim of ensuring financial stability, protecting depositors, and maintaining public confidence in the banking system. Here is the key aspects of the Banking Ordinance:

• Licensing and Authorization of Banks;
• Capital adequacy requirements;
• Supervisory framework;
• Prudential requirements;
• Corporate governance;
• Consumer protection;
• Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF);
• Resolution and recovery;
• Penalties and enforcement; and,
• Cross-border banking.

Types of banks in Hong Kong

The ordinance distinguishes three types of authorized institutions (AIs) that can operate banking services in Hong Kong:

• Licensed Banks: These institutions are authorized to accept deposits and offer various banking services, including current and savings accounts, loans, and foreign exchange. Well-known institutions such as;
• Bank of China (Hong Kong) Limited;
• Hongkong and Shanghai Banking Corporation Limited (HSBC); and,
• Citibank (Hong Kong) Limited.
• Restricted License Banks: These institutions are allowed to take deposits of at least HK$500,000 and engage in activities like merchant banking and private banking. Well-known institutions such as;
• J. P. Morgan Securities (Asia Pacific) Limited;
• Goldman Sachs Asia Bank Limited;
• Deposit-taking companies;
• BPI International Finance Limited; and,
• Chong Hing Finance Limited.
• Deposit-taking Companies: They can take deposits of HK$100,000 or more with a maturity of at least three months. These companies typically offer specialized services like consumer credit or trade financing.

The Hong Kong Monetary Authority (HKMA) is responsible for granting licenses and authorizations based on strict criteria, including the institution's capital adequacy, management structure, and business plans.

The biggest banks in Hong Kong 

As a global financial hub, Hong Kong is home to many of the world’s largest and most influential banking institutions. The city’s banking landscape is highly competitive, with over 150 licensed banks operating under strict regulatory standards. Notably, more than 70 of the top 100 banks globally have a presence in Hong Kong, making it one of the most concentrated banking sectors in the world. This section provides an overview of some of the biggest banks shaping Hong Kong’s financial ecosystem, from local giants to international powerhouses.

HSBC Hong Kong

HSBC (The Hongkong and Shanghai Banking Corporation) is one of the most recognizable names in global banking, and its roots are deeply embedded in Hong Kong’s financial history. Founded in 1865, HSBC was initially established to facilitate trade between Europe and Asia. Today, HSBC is one of the largest banks in the world by assets, and its Hong Kong arm remains a critical part of its global operations.

As Hong Kong’s largest bank, HSBC dominates the local banking sector with a broad range of services, including retail, corporate, investment banking, and wealth management. Its deep integration into Hong Kong’s economy and significant market share make HSBC the go-to bank for businesses and individuals alike. With a commitment to innovation, HSBC has been at the forefront of digital banking services in the region, solidifying its role as a market leader.

Bank of China (Hong Kong)

Bank of China (Hong Kong) Limited (BOCHK) is another dominant player in the city’s financial landscape. Although its history dates back to the early 20th century, BOCHK was incorporated in 2001, creating a consolidated banking group under the Bank of China. BOCHK has established itself as one of Hong Kong’s largest banking institutions, offering comprehensive financial services, including retail banking, treasury, and investment services.

One of BOCHK’s key strengths lies in its strong connections to mainland China, which positions it as a gateway for cross-border banking services between Hong Kong and China. This strategic advantage has helped BOCHK build a large client base among both local and international companies seeking to expand in mainland China. The bank also plays a significant role in promoting the internationalization of the Renminbi (RMB), further enhancing its global stature.

Hang Seng Bank

Hang Seng Bank, a subsidiary of HSBC, is renowned for its focus on serving local retail and small to medium-sized enterprises (SMEs). Founded in 1933, Hang Seng is one of Hong Kong’s largest listed companies. The bank’s services span retail banking, wealth management, and commercial banking, making it a trusted choice for personal finance solutions.

Hang Seng’s most distinctive offering is its Hang Seng Index (HSI), which has become one of Asia’s most widely followed stock market indices. This strong local identity, coupled with its customer-first approach, has allowed Hang Seng to maintain a solid customer base in Hong Kong, particularly among individuals seeking personal loans, savings accounts, and mortgages. Its reputation for quality service has led to high levels of customer loyalty.

Standard Chartered Hong Kong

Standard Chartered Hong Kong holds a unique position as a bank that merges local expertise with a broad international presence. With over 150 years of history in the city, Standard Chartered is a household name in Hong Kong’s banking industry. The bank offers an array of services, including corporate banking, retail banking, and wealth management, catering to both local and multinational clients.

One of the key strengths of Standard Chartered is its focus on corporate and institutional banking, serving clients across the Asia-Pacific region and beyond. Its global footprint, combined with its deep understanding of local markets, enables the bank to offer tailored financial solutions that address the complex needs of large corporations and high-net-worth individuals.

Citibank Hong Kong

Citibank Hong Kong, the local arm of U.S.-based Citigroup, has been a fixture in the city since 1902. It is known for its focus on international banking services, making it particularly popular among expatriates, multinational corporations, and high-net-worth individuals seeking global financial services.

Citibank offers a wide range of services, including retail banking, wealth management, and investment banking. Its global reach allows it to offer clients seamless cross-border banking services, which are especially valued in a city as internationally connected as Hong Kong. The bank has also been a key player in driving innovation in the financial sector, particularly in areas such as digital banking and fintech partnerships.

Virtual banks in Hong Kong

In addition to traditional banks, another emerging option is virtual banks, which have no physical branches and focus on digital services. This concept is still very new to Hong Kong, and as of May 31, 2023, the HKMA only granted eight licenses for virtual banking.