Hong Kong's Financial Services and the Treasury Bureau has gazetted the Banking Legislation (Miscellaneous Amendments) Bill 2026 to update the banking framework, with changes that would simplify the current three-tier banking system into a two-tier system, bring bank holding companies more clearly within regulation, and strengthen supervisory and enforcement tools. The package also includes technical amendments intended to reduce compliance burdens and improve regulatory clarity. The bill would amend the Banking Ordinance to allow the engagement of skilled persons for supervisory purposes and to modernise enforcement provisions. It would also amend The Hong Kong Association of Banks Ordinance and the Financial Institutions (Resolution) Ordinance to enhance operational efficiency and flexibility. The Hong Kong Monetary Authority consulted the public and industry on the proposals between 2023 and 2025, and the response was described as broadly supportive. The bill is scheduled to be introduced into the Legislative Council for first reading on June 17.
Financial Services and the Treasury Bureau (Hong Kong)2026-06-05
Hong Kong Financial Services and the Treasury Bureau gazettes banking bill to move to a two tier system and expand supervisory powers
The Financial Services and the Treasury Bureau has gazetted the Banking Legislation (Miscellaneous Amendments) Bill 2026 to simplify Hong Kong’s three-tier banking system into two tiers, bring bank holding companies more clearly within regulation, and strengthen supervisory and enforcement tools. The bill would also introduce skilled person powers and make technical amendments to the Banking Ordinance, The Hong Kong Association of Banks Ordinance and the Financial Institutions (Resolution) Ordinance to reduce compliance burdens and improve operational efficiency.