CURRENCY AND BANKING
79
The total currency in nominal circulation at 31st December, 1957, was:
Bank note issue
Government $1 note issue
Subsidiary notes and coin
$
755,345,905
37,491,500
19,855,573
The Colony has been a part of the sterling area since August 1941. Exchange Control is administered under powers conferred by the Defence (Finance) Regulations, 1940. The system of control is based on that in force in the United Kingdom, with some modifications necessitated by the posi- tion 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 and that each bank must publish an annual balance sheet. At the end of 1957 there were 83 licensed banks, of which 33 were authorized wholly or partially to deal in foreign exchange. A list of these latter is given in Appendix VI. Some of these banks have branches or correspondents 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 52 members. Monthly clearings in 1957 averaged $1,411,636,456.
No licensed banks operate 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.