ENG-1968 — Page 72

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FINANCIAL STRUCTURE

deposits, amounted to 58.2 per cent at the end of the year, compared with 65.5 per cent at the end of 1967.

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, limitations on the holdings of certain classes of assets, and control over the opening of branches. Monthly returns are made by all banks to the Com- missioner of Banking, who makes regular inspections.

At the end of 1968 there were 71 incorporated banks in Hong Kong, the same number as at the end of 1967. A total of 349 bank- ing offices existed at the end of 1968, representing an increase of 18 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 $6,164 million. The table at Appendix XIV illustrates the expansion of banking activities over the past 13 years.

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