Sage-Tips

Does Hong Kong have a central bank?

Otherwise known as the Central Bank of Hong Kong, the HKMA is governed by both the Banking Ordinance and the Exchange Fund Ordinance. Its primary responsibilities are to ensure the stability of the city’s monetary policy and banking systems.

How independent is the central bank?

Central banks in most developed nations are institutionally independent from political interference. Still, limited control by the executive and legislative bodies exists.

Who is Singapore central bank?

The Monetary Authority of Singapore (MAS) is the central bank and financial regulatory authority of Singapore. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.

What is monetary policy in Hong Kong?

Hong Kong’s monetary policy objective is to maintain a stable exchange value of the Hong Kong dollar. Hong Kong is a highly externally-oriented and open economy without imposing foreign exchange controls. Maintaining a stable exchange rate is therefore very important for Hong Kong.

What is the difference between commercial bank and private bank?

Private Banks are owned by private individuals and entities whereas commercial banks are the entities that include both private and public banks. Commercial banks have a wider customer base whereas a private bank serves selective clients.

Why is central bank different from other banks?

Central banks receive their deposit from other banks. Commercial banks serve individuals and businesses, while central banks serve the country’s banking system. They provide money transfers back and forth between banks and governmental institutions both domestically and in cases of transactions with foreign entities.

Should the central bank of a country be independent or not?

Independence is important because researchers have found that the more independent a central bank is, the lower the inflation it allows without injuring growth and employment goals.

Which countries have central bank independence?

Notes: Countries included are: Canada, France, Germany, Italy, Japan, the Netherlands, Norway, Portugal, Spain, Switzerland , the United Kingdom and the United States. As a central banker, you might expect me to extoll the virtues of central bank independence. Spoiler alert, I will not disappoint.

What is Exchange Bank function?

Exchange Bank is a community bank offering personal and business banking services including mortgages, home loans, and lines of credit and SBA loans. The exchange banks finance the internal trade of the country. They finance the movement of goods from one commercial center to another.

Who issues the Hong Kong dollar banknotes?

Hong Kong Dollar banknotes are issued by three private banks and the Government of Hong Kong. The Hong Kong Dollar is also accepted for payments in neighbouring Macau. We exchange both current and withdrawn Hong Kong Dollar banknotes.

What is the currency of Hong Kong?

The Hong Kong Dollar was introduced as the currency of Hong Kong in 1863. Hong Kong Dollar banknotes are issued by three private banks and the Government of Hong Kong. The Hong Kong Dollar is also accepted for payments in neighbouring Macau.

When did Hong Kong stop issuing 1 cent notes?

In 1994, the Hong Kong Monetary Authority (HKMA), gave authority to the Bank of China to issue notes. The 1-cent note issued by the Government was demonetised and ceased to be legal tender on 1 October 1995.

What happened to the Mercantile Bank of Hong Kong?

The Mercantile Bank was absorbed by HSBC in 1978 and ceased issuing notes. In 1985, 20-dollar notes were introduced, whilst, in 1993, a 10-dollar coin was introduced and the banks stopped issuing 10-dollar notes. In 1994, the Hong Kong Monetary Authority (HKMA), gave authority to the Bank of China to issue notes.