Hong Kong government proposes banking fee adjustments to enhance financial services efficiency

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22nd May 2024 – (Hong Kong) The Hong Kong Government informed the Legislative Council (LegCo) today of its intent to amend various fees under the Banking Ordinance. This includes adjustments to fees for banking licences, the establishment of branches, local representative offices (LROs), and registration of approved money brokers (AMBs).

Secretary for Financial Services and the Treasury, Mr. Christopher Hui, detailed that the revisions were prompted by a comprehensive review conducted by the Hong Kong Monetary Authority (HKMA). “Following the directives set forth in the 2024-25 Budget, the HKMA has reassessed the fees outlined in the Second Schedule to the Ordinance and recommends an increase based on several critical factors,” stated Mr. Hui.

The proposal considers the principles of ‘user pays’ and cost recovery, alongside general price inflation and the operational costs borne by financial institutions. “The adjustments are designed to have minimal impact on the day-to-day operations of the banks and will not undermine Hong Kong’s standing as a global financial hub,” he added.