Hong Kong

HKMA is Hong Kong’s central bank and the principal banking supervisory authority, and is independent in its statutory status under the Financial Services and the Treasury Bureau. Founded on April 1, 1993, HKMA acts as a highly evolved macroprudential authority in charge of ensuring systemic financial stability in Hong Kong and preserving the Link Exchange Rate System where the Hong Kong Dollar is linked to the US Dollar. Under the leadership of Chief Executive Eddie Yue, JP, HKMA controls the Exchange Fund – the official multi-billion-dollar fiscal and foreign exchange reserves of the territory- and acts independently as a representative of Hong Kong at high-level international organizations, such as BCBS and FSB.

As an important function, the HKMA ensures the stability of the monetary and banking sectors in Hong Kong through its management of the Exchange Fund to ensure that the statutory currency peg to the US Dollar is safeguarded. It functions as the principal regulator of all licensed banks, restricted licence banks, and deposit-taking institutions, implementing stringent requirements regarding capital adequacy, conducting stress testing and on-site compliance audits to reduce systemic risks. The HKMA develops, improves, and manages Hong Kong’s essential financial market infrastructure, such as real-time gross settlement systems and retail payment systems, including the Faster Payment System (FPS). Moreover, it encourages financial technology innovations, develops a strong regulatory framework for virtual assets and stablecoins under the Payment Systems and Stored Value Facilities Ordinance, and works with other central banks across the globe to fight money laundering and terrorism financing and maintain Hong Kong’s status as a leading global financial center.