48
HONG KONG ANNUAL REPORT
system of control is based on that in force in the United Kingdom, with some modifications necessitated by the position of Hong Kong as an entrepôt.
BANKING
The Banking Ordinance provides that no institution may engage in banking without obtaining a licence from the Governor-in-Council to do so, and that each bank must publish an annual balance sheet. At the end of 1955 there were 91 licensed banks, of which 33 were authorized to deal in foreign exchange. A list of these latter is given in Appendix X. Some of these banks have branches or corres- pondents throughout the world and are thus able to offer comprehensive banking facilities to the public. Interbank transactions are facilitated by a clearing house association with 51 members. Monthly clearings in 1955 averaged $1,159,666,853.
There are
no licensed banks in the New Territories, although there are several towns of a size which in England would have one or more banks. Safe custody for cash is provided by the larger shops; for other banking business it is necessary to travel into Kowloon or Hong Kong.