Banking Structure and Operations

  • Y. C. Jao


Hong Kong is one of the very few places in the world that defy the universal trend towards the ‘central banking system’, in which the central bank at the apex of the banking sector exercises its leadership and control over the commercial banks and other intermediates. In the absence of a central bank, the study of banking in Hong Kong is primarily an analysis of the structure and operations of the commercial banking industry.


Commercial Bank Foreign Currency Large Bank Foreign Bank Saving Bank 
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Notes and References

  1. 3.
    For a description of the evolution of Hong Kong’s currency system, see F. H. H. King, The Monetary System of Hong Kong (Hong Kong, 1953)Google Scholar
  2. F. H. H. King, Money in British East Asia (London, 1957)Google Scholar
  3. C. F. J. Tom, The Entrepót Trade and the Monetary Standards of Hong Kong (Hong Kong, 1964)Google Scholar
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  6. D. Stammer, ‘The Currency Issue’, Far Eastern Economic Review (19 Jan 1967) pp. 104–7. We shall deal with more recent developments in the chapter on money supply.Google Scholar
  7. 4.
    A. J. Baxter, ‘Origins of British Exchange Banks in China’, Economic History, a supplement of Economic Journal, (Jan 1934).Google Scholar
  8. J. Leighton-Boyce, ‘The British Exchange Banks’, in C. D. Cowan (ed), The Economic Development of South-East Asia (London, 1964)Google Scholar
  9. F. H. H. King, ‘British Chartered Banking: Climax in the East’, Supplement to University of Hong Kong Gazette (1 Aug 1969) pp. 1–10.Google Scholar
  10. 5.
    Annual Reports of the Hong Kong and Shanghai Banking Corporation, various years; J. A. H. Saunders, ‘The Hong Kong and Shanghai Banking Corporation’, The Banker (July 1970) pp. 755–9.Google Scholar
  11. 7.
    For a discussion of this strategy in the face of rapid changes during the post-war era, see Susan Strange, Sterling and British Policy (London, 1971) Chapter 5.Google Scholar
  12. 10.
    For structural changes in the Chinese banking system during the ‘fifties’, see Katherine Huang Hsiao, Money and Monetary Policy in Communist China (New York, 1971) pp. 17–64.Google Scholar
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  14. 11.
    Yang Tuan-lu, Ch’ing-tai huo-pi chin-yung shih-kao (Draft History of Money and Finance under the Ch’ing Dynasty), (Peking, 1962) pp. 124–180Google Scholar
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    Ng Kwok Leung, ‘The Native Banks: Their Structure and Interest Rates’, Far Eastern Economic Review (Feb 11 1960) pp. 307–19.Google Scholar
  17. 17.
    The ‘cloakroom’ theory of commercial banking is associated with Edwin Cannan: ‘the most abandoned cloakroom attendant cannot lend out more umbrellas or bicycles than have been entrusted to him, and the most reckless banker cannot lend out more money than he has of his own plus what he has of other people’s.’ Edwin Cannan, ‘The Difference Between a Bank and a Cloak-Room’, reprinted in his An Economist’s Protest (London, 1927), pp. 256–66.Google Scholar
  18. 24.
    For a comprehensive review, see P. M. Horvitz, ‘Economies of Scale in Banking’, in Commission on Money and Credit, Private Financial Institutions, (Englewood, 1963) pp. 1–54.Google Scholar
  19. 25.
    Thus in Hong Kong only a few largest banks are able to install online systems. See A. Polsky, ‘Electronic Banking’, Far Eastern Economic Review (25 Jan. 1968), pp. 161–2Google Scholar
  20. J. P. Rastello, ‘The Computer Age’, Far Eastern Economic Review Banking in Asia (30 April 1970), pp. 37–40Google Scholar
  21. R. V. Munden, ‘The Decision Machines’, Far Eastern Economic Review Banking in Asia (1 Apr 1972) pp. 83–4.Google Scholar
  22. 33.
    See Mary Campbell, ‘The Multinational Banking Framework’, The Banker (June 1971) pp. 628–39Google Scholar
  23. William M. Clarke, ‘World Banking in the 1980s’, The Banker (Oct 1971) pp. 1172–4Google Scholar
  24. Michael Green, ‘New Model Multinational Bank’, The Banker (May 1971) pp. 480–7.Google Scholar
  25. 34.
    Michael von Clemm, ‘Consortium Banks — Design for Adversity?’, Statist World Banking 1971–72 (London) pp. 19–20. The same point is made, in the case of British overseas banks, in Susan Strange, Sterling and British Policy (London, 1971) Chapter 5.Google Scholar

Copyright information

© Y. C. Jao 1974

Authors and Affiliations

  • Y. C. Jao
    • 1
  1. 1.University of Hong kongChina

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