Hong Kong Regulator Updates Authorisation Guidelines On 'Virtual Banks'

Originally published by Outlaw.com

Technology companies, as well as existing financial institutions, are free to apply to own and operate 'virtual banks' in Hong Kong, a financial regulator in the city has said.08 Feb 2018

The Hong Kong Monetary Authority (HKMA) has said, however, that virtual banks would be subject to the same regulatory requirements as "conventional banks", although it confirmed that "some of these requirements will need to be adapted to suit the business models of virtual banks".

"For example, although virtual banks will be required to satisfy the same corporate governance standards as conventional banks, given their technology-driven business models, the board of directors and senior management of virtual banks should have the requisite knowledge and experience to enable them to discharge their functions effectively," it said.