The Hong Kong banking market is about to get even more competitive. Dozens of firms have registered to establish a virtual bank in the city.
The Hong Kong Monetary Authority (HKMA) issued guidelines for the launch of virtual banks in the territory in February 2018. A new public consultation issued on the HKMA website now sets August 31 as the deadline for receiving the first batch of applications.
Since the the city's central bank and banking regulator, announced its intention to encourage virtual banking in Hong Kong it has received enquiries and indications of interests from over 50 companies including applications from global entities.
Prepare to Fail
«We will evaluate the applications carefully and expeditiously, applying the principles set out in the revised guideline. We hope to be in a position to start granting licences to virtual banks towards the end of this year or in the first quarter of next year,» said Norman Chan, HKMA chief executive.
While the virtual banks will only operate online, the HKMA will require them to have at least one physical office that can also handle complaints from customers. The application must also include a detailed exit plan.
