The Hong Kong Monetary Authority released a summary of public consultation regarding the three-tier system of banks. During this period, a total of seven opinions from the banking industry, professional groups, and related organizations were received. The respondents widely support the proposal to simplify the three-tier banking system into a two-tier system. After considering the received opinions, the Hong Kong Monetary Authority has put forward several new key issues to simplify the transition and minimize the impact on existing customers of accepting deposit companies.

The Hong Kong Monetary Authority proposes to adopt that, before the end of the five-year transition period, accepting deposit companies can be converted into licensed banks with restrictions if they can prove to the Hong Kong Monetary Authority that they have met the minimum capital requirements of licensed banks with restrictions. At the same time, accepting deposit companies upgraded to licensed banks with restrictions can continue to hold, renew, or extend the deposits accepted before the upgrade until the end of the five-year transition period, but these deposits must meet the current requirements of a 0.1 million yuan deposit amount and a three-month term for accepting deposit companies.

The consultation began on June 26th of last year and lasted for three months. The Hong Kong Monetary Authority proposed to incorporate accepting deposit companies into the second level, which is licensed banks with restrictions, and set a five-year transition period to comply with the current requirements of a minimum capital of 0.1 billion yuan and a minimum deposit amount of 0.5 million yuan for licensed banks with restrictions. Norman Chan, the Chief Executive of the Hong Kong Monetary Authority, stated that guidance would be provided to accepting deposit companies on transitional matters, and they would cooperate with relevant parties to prepare for legislative amendments to implement the proposed measures.