Introduction
The Hong Kong’s financial institutions are bounded up with the improvement of the colony as a whole, but this is as aspect of the Hong Kong which has been neglected in enthusiasm to discuss the colony’s industrial development. In 1951, as the pre war declined entrepot role in Hong Kong, it was the end of the embargo on trade with China imposed USA and also the UN. Given the fact that Hong Kong gained its global links in the 1950’s and in 1960’s, linking markets in the USA, Western Europe, UK, the Middle East and South Asia, as well as its neighbors in East and Southern Asia. This will lead to the emergence of Hong Kong market as an important part of the international monetary system and worrying breach at the international investment control in this period.
If we look at the background of the Hong Kong in terms of the banking system we had been discovered that it is on one of the largest representations of the world’s international banks. One of which is the 76 world’s 100 largest banks have a presence here. Aside from that, it was ranked as the 3rd largest international banking center in the external transactions terms. It was also the world’s 6th largest foreign exchange center in the banking sector for being the major participant of the exchange market in Hong Kong.
Under the partnership of the Honk Kong and the Mainland China, it has been set that the lower barriers are for the Hong Kong banks entering the China market. This will benefit to the Hong Kong newcomers and to the China market, the Hong Kong banks that have already operated on the mainland as well. The data below shows on how the Hong Kong banks are well improved. Because as we can see it has been reported that the total banks who are currently registered and has the licensed were goes up to 137 total banks.
Industry Data
Number of Reported Institutions (February 2007)
-
Licensed Banks
137
Restricted Licence Banks
30
Deposit-taking Companies
32
Representative Offices of Foreign Banks
85
Total Employment (Sep 2006)
81,619
Sources:
External Finance is the finance that comes outside the business. It also involves owing money of the business to outside the individuals or in the institutions. One of this external finance is the bank loans or in the bank sectors, according to the study of shows that only 4 percent of the business’ finance comes from the banking sector. Besides it also shows that the majority of its capital came from its self-finance. The example below only shows that the main source of the business firms is not only the banks’ loans but it was the self-financed, meaning to say that businessmen still start their business as their own money. Though, it was ranked as the second of the choices, banks still consider the as the sources of finances of the firm but not the main source.
Self-financing is dominant source of funds for China's private firms
(percent of surveyed firms)
Self-
financed
Bank
loans
Nonfinancial
institutions
Other
Years in operation
< 3 years
92.4
2.7
2.2
2.7
3-5 years
92.1
3.5
0
4.4
6-10 years
89
6.3
1.5
3.2
> 10 years
83.1
5.7
9.9
1.3
All
90.5
4
2.6
2.9
Source: 2000,
There are many activities that banks are allowed to do in others countries, just like in general banking activities, fiduciary activities, the insurance and annuities activities, the securities activities, and the technology and electronics activities. These activities are allowed to use and be used in other countries, for example in US. Besides these activities are also the activities that are permissible internationally.
There are two main categories of banks the federally chartered national banks and the stated-chartered banks. Benefit that will gain in belonging in the Federal Reserve System is that member’s banks’ deposit will be automatically insured by the FDIC, which protected the account in a member. While, a state-chartered bank is states granted authority which operates and is at the regulation of an appropriate state agency.
Banks
Total Assets
Company
Industry
Sector
1. Bank of America (Asia)
1.32
1.38
3.53
2. Generale Belgian Bank
0.53
1.04
3.89
3. Dah sing Bank
1.2
1.32
3.31
4.Hang Seng Bank
0.74
1.35
3.49
5. Wing Hang bank
1.54
1.32
3.24
These banks offers a diversified range of banking and non-banking financial services and products through three business segments, Global Consumer and Small Business Banking, Global corporate and investment banking, and global wealth and investment management. The banks major services includes banking and insurances, some ahs retail banking, commercial and private banking, merchant banking, insurance Belgium, insurance international. The banks also accept the deposits from individual customers and the extension of residential mortgage lending, personal loans, overdraft and credit card services, and the provisions of insurance sales and investment services.
Some of the banking services of the Hang Seng Bank include the prestige banking, the payroll services, new renminbi services, and the foreign currency and time deposit services. While, the wing hang bank offers its services as personal ebanking, deposit services, mortgage services, card services, and the consumers credit, insurance services, remittance services and investment services.
The structure of their assets and their liabilities simply tells us that the company’s assets are the banks performance or the banks banking system because at this method it has been showed that the asset of the bank is mainly based on the banking system.
Conclusion:
Bank is generally used in referring to commercial banks; however, it can also be used to refer to savings institutions, savings and loans associations, and buildings and loan associations. For these reasons there are two kinds of bank which is commercial bank is authorized in receiving demand deposits (payable on order) and time deposits (payable on a specific date), lending money, providing services for fiduciary funds, issuing letters of credit, and accept and pay drafts. A commercial bank not only serves its depositors but also can offer installment loans, commercial long-term loans, and credit cards while savings bank does not offer as wide a range of services. Its primary objective is serving its depositors by providing loans for purposes such as home improvement, mortgages, and education. By law, a savings bank can offer a higher interest rate in its depositors than can a commercial bank
Based on the recently concluded studies and the currently news regarding the banking system had just implied, the Deposit Protection Ordinance governs the setting up and operation of the scheme. This ordinance implies all depositors are not requiring applying fro the protection or compensation, both Hong Kong dollar and foreign currency deposits are protected and differential contributors will be assessed based on the supervisory ratings of individual scheme. This banking system is widely use world wide and even in Hong Kong wherein some of its banking system methods are telephone banking, retail internet banking service, corporate wholesale internet services, internet service provider, brokerage service over the Internet, insurance services over the Internet, trust services over the internet, account aggregation, electronic bill payment and other activities such as web portals, financial calculators, cross-marketing arrangements and alliances, unique services. And of course, the main user of these fast methods is typically a bank analyst, who uses the system to define and organize new services. Aside from that, it was the users and the borrowers who are adept in this king of technology. This method will greatly can helped the users and allows the easy and the rapid development and execution of management system at the bank branch level.
If we compare the banking system in Hong Kong and in Singapore they have things in common in terms of the banking system, which allows to engage in a wide range of financial services, including the traditional banking services such as loans and deposits, and also the banking business as underwriting and distribution of equity and the debt securities, the corporate finance, fund management and the unit trust management. Just like in Hong Kong there are also many banks that merged in Singapore and has three categories in the field of the commercial banks as full banks, wholesale banks, and the offshore banks. Same as the bank in Hong Kong Singapore is also offers the banking services as the cash payments, credit transfers, direct debits, payment cards, the credit cards, the mobile banking and so much more.
Singapore’s banking system also engage in high technology system just like in Hong Kong. Let’s take a look at the bank in Singapore which offers an ibanking, personal banking as latest promotions, deposits, investments, insurance, loans, credit and debit cards, automated transfers and services and the payments and transfers. This are commonly use in banks transaction.
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