FINANCIAL STRUCTURE
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Banking business in the Colony is licensed by the government and carried on subject to the provisions of the Banking Ordinance, which deals with the supervision of banks and requirements of minimum capital and reserves, liquidity ratios, and limitations on the holding of certain classes of assets. Monthly returns are made by all banks to the Commissioner of Banking, who makes regular inspections. The Banking Ordinance was amended during the year in the light of experience gained since it came into operation in 1964. The amendments mainly affect minimum capital, reserves and liquidity of banks, control over the opening of branches, and certain powers and functions, largely of a technical banking nature, of the Commissioner of Banking."1
At the end of 1967 there were 71 incorporated banks in Hong Kong, compared with 72 at the end of 1966. A total of 331 banking offices existed at the end of 1967, representing an increase of 13 during the year. Fifty-one banks are authorized to deal in foreign exchange. Many have branches and correspondents throughout the world and Hong Kong offers a comprehensive banking service of the highest order. Monthly clearings during the year averaged $4,858 million. The table at Appendix XIV illustrates the expansion of banking activities over the past 12 years.
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