Hong Kong is planning to amend the Banking Ordinance to establish a regulatory system for the statutory control of bank holding companies.

On June 17th, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu, proposed the second reading of the "Banking (Miscellaneous Amendments) Bill 2026" at a Legislative Council meeting. He stated that in order to further strengthen the regulatory framework of Hong Kong's banking industry and ensure that the regulatory system keeps pace with the times, the amendments were proposed after a comprehensive review. The proposed amendments to the Bill are divided into six main parts, including simplifying the three-tier banking system to a two-tier system, establishing a statutory regulatory regime for bank holding companies, improving enforcement provisions, hiring individuals with relevant expertise, technical revisions, and revisions to other banking-related regulations. Hui pointed out that the main purpose of the Bill is to ensure that Hong Kong's banking legislation remains responsive to the evolving banking environment and supports future development. Hong Kong's banking sector is robust and exemplary. In the latest Global Financial Centres Index, Hong Kong continues to rank third globally and first in the Asia-Pacific region, with Hong Kong's banking sector ranking first worldwide. In 2025, Hong Kong's banking system saw a deposit growth of 11.8%, with total deposits reaching HK$19.4 trillion. The overall pre-tax operating profit of retail banks in Hong Kong increased by 7.3% last year, reflecting the solid profitability and resilience of the banking industry. The proposed amendments to the Bill are as follows: 1. Simplifying the three-tier banking system to a two-tier system 2. Establishing a statutory regulatory regime for bank holding companies 3. Improving enforcement provisions 4. Hiring individuals with relevant expertise 5. Technical revisions 6. Revisions to other banking-related regulations Hui emphasized the importance of these amendments in ensuring a robust regulatory framework that supports banking sector development. He urged legislators to support and pass the Bill so that the proposed amendments can be implemented as soon as possible.