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Banking Structure and Operations

  • Y. C. Jao

Abstract

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.

Keywords

Commercial Bank Foreign Currency Large Bank Foreign Bank Saving Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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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
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  7. 4.
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  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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  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
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    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
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  22. 33.
    See Mary Campbell, ‘The Multinational Banking Framework’, The Banker (June 1971) pp. 628–39Google Scholar
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  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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