Key statistics on Hong Kong’s banking sector

Total asset size of the banking sector exceeds HK$15 trillion.

Financial Secretary John Tsang has revealed the following data about Hong Kong’s growing banking sector:

In 1963, 87 banking licenses were approved in Hong Kong, 48 of which were authorized to deal in foreign exchange. Today, HK has over 200 authorized institutions, of which 156 are licensed banks.

Total deposits in 1963 reached HK$5.4 billion while loans and advances to commerce and industry amounted to HK$3.6 billion. Today, total asset size of the HK banking sector exceeds HK$15 trillion. Customer deposits have reached HK$8.6 trillion and total loans and advances exceed HK$6 trillion.

The combined fund-management business in Hong Kong reached a record high of HK$12.6 trillion in 2012, representing a year-on-year growth of 40%.

Locally incorporated banks have demonstrated strong capital adequacy ratios, averaging 16.6%, well above the international minimum requirement of 8%.

More overseas banks are using renminbi correspondent banking accounts provided by two banks in Hong Kong, with over 1,600 such accounts opened at present, up from only 180 in 2010.

Over 200 banks now participate in the renminbi clearing platform in Hong Kong. Over 180 of these represent branches and subsidiaries of foreign banks and overseas presence of Mainland banks.

In 1963, offshore renminbi banking would have been virtually inconceivable. Today, Hong Kong is the premier offshore center for renminbi business and the focal point for Mainland China's currency liberalization.

Hong Kong is committed to implementing G20 commitments on over-the-counter, or OTC, derivative regulatory reform. The government introduced an amendment bill into the legislature in July this year to impose a mandatory obligation on reporting, clearing and trading of specified over-the-counter derivative transactions.