Virtual banks have officially been renamed as digital banks. Ng Kok Hang, Deputy Chief Executive of the Monetary Authority, stated that as of June this year, the total number of customers, deposits, loans, and operating income of digital banks have been steadily increasing. Although the 8 digital banks have not achieved a balanced budget for the year, the overall development pace is healthy, and it is believed that the policy objectives of the authorities have been achieved.

When asked about market rumors that individual digital banks may change hands or have selling pressure, he emphasized that at the time of application, shareholders of each digital bank promised to adhere to the principle of long-term operation. It is believed that it will not be easy for them to exit or trade licenses. Currently, there is no intention to issue new licenses, but the authorities will allow individual digital banks to introduce new shareholders.

He also revealed that as of June this year, the specific classification loan ratio of the banking industry in Hong Kong has risen to 1.89%. The industry reflects that loan demand is still weak, and there is upward pressure on specific classification loan ratios. If the liquidation value of collateral is taken into account, banks' loan loss coverage ratios have reached 150%, indicating that asset quality risks are manageable. In response to the prudent handling approach to the risks associated with banks' encrypted assets, the Monetary Authority expects that revised rules will be submitted to the Legislative Council in the second half of 2025.