HKMA Revised Guidelines On Authorisation Of Virtual Banks

On 30 May 2018, the Hong Kong Monetary Authority (HKMA) issued a revised Guideline on Authorization of Virtual Banks (the "Guideline"). In principle, a virtual bank is subject to the same authorisation criteria and requirements as a conventional bank. In addition to the Guideline on Minimum Criteria for Authorization which applies to conventional banks, the Guideline provides specific guidance on how the HKMA will apply the minimum authorisation criteria set out in the Seventh Schedule to the Banking Ordinance (the "Ordinance") to a virtual bank.

The Guideline is issued as part of the package of initiatives to bring about a New Era of Smart Banking in Hong Kong. The aim is to encourage the development of virtual banks in Hong Kong, with the objectives of promoting application of financial technology and facilitating financial inclusion. The revision of the Guideline demonstrates the HKMA's willingness to adapt appropriately to cater for features unique to the