ENG-1959 — Page 81

CURRENCY AND BANKING

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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 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 and that each bank must publish an annual balance sheet. At the end of 1959 there were eighty two licensed banks, of which forty two were authorized wholly or partially to deal in foreign exchange. A list of these latter is given in Appendix VI. Many 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 fifty three members. Monthly clearings in 1959 averaged $1,494 million.

In consequence of the growing importance of subsidiary commercial and industrial centres local branch banking is now developing at an accelerated rate. This development has not yet extended to the New Territories, although there are several towns there which in the United Kingdom would have one or more bank, but it is expected to do so in the near future.