ENG-2011 — Page 123

Financial and Monetary Affairs | 87

(DTCs). They are known collectively as Als under the Banking Ordinance (BO). The HKMA is the licensing authority for Als.

Hong Kong has one of the highest concentrations of banking institutions in the world. At the end of 2011, there were 152 LBs, 20 RLBs and 26 DTCs. These 198 Als maintained a network of 1 422 local branches. There were also 61 representative offices of banks incorporated outside Hong Kong at the end of the year.

The total deposit liabilities of all Als to customers and the total loans and advances extended by these institutions at the end of 2011 were $7,591.3 billion and $5,080.4 billion respectively. The total assets of all Als amounted to $13,741.3 billion.

Statistics on Als

2009

2010

2011

Als

199

193

198

Of which: LBs

145

146

152

RLBS

DTCS

26

21

20

28

26

26

Local branches of Als

1 379

1 413

1 422

Total customer deposits ($ billion)

6,381

6,862.3

7,591.3

Total loans and advances ($ billion)

3,288.5

4,227.7

5,080.4

Total assets ($ billion)

10,635.4

12,290.8

13,741.3

Hong Kong Monetary Authority

The HKMA was established on April 1, 1993 after the Legislative Council had passed amendments to the Exchange Fund Ordinance in 1992 empowering the Financial Secretary to appoint a Monetary Authority. The administrative expenditure of the HKMA is funded by the Exchange Fund established under the Exchange Fund Ordinance. The administrative expenditure of the HKMA in 2011 was $1,033 million.

The HKMA's policy objectives are to maintain currency stability within the framework of the Linked Exchange Rate system through sound management of the Exchange Fund, monetary policy operations and other means deemed necessary; to promote safety and stability of the banking system through the regulation of banking business, the business of taking deposits and the supervision of Als; and to

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Only LBs may conduct full banking services, including in particular the provision of current and savings accounts and acceptance of deposits of any size and maturity. RLBS may take deposits of any maturity of $500,000 or above. DTCs may take deposits of $100,000 or above with an original maturity of at least three months.

The BO provides the legal framework for banking supervision in Hong Kong. Under the ordinance, the HKMA is the licensing authority responsible for granting and revoking the authorisation of all Als, and the approval and revocation of money broker licences.