HKCEE Macroeconomics n Chapter 3: Banking and Financial Systems By Mr. LAU san-fat CH 3 -Banking & Financial Systems 1
Function & Types of Banks n n Banks act as financial intermediaries that accept deposits and channel them into productive investment. Types of banks n n n Central bank Commercial banks Merchant banks By Mr. LAU san-fat CH 3 -Banking & Financial Systems 2
Functions of a Central Bank 1. 2. 3. 4. 5. 6. Issuing note Acting as the lender of last resort Acting as the government banker Acting as a clearing house Supervising private banking activities Carrying out monetary policies 1. via varying the discount rate By Mr. LAU san-fat CH 3 -Banking & Financial Systems 3
Central Bank Functions in HK n Lender of last resort n n The Exchange Fund/HK Monetary Authority Note-issuing n The Hong Kong and Shanghai Banking Corporation Ltd. , the Standard Chartered Bank, the Bank of China, and the Hong Kong Monetary Authority. By Mr. LAU san-fat CH 3 -Banking & Financial Systems 4
Central Bank Functions in HK n Government bank n n The Hong Kong and Shanghai Banking Corporation Ltd. & the Bank of China The Treasury The Hong Kong Monetary Authority Bank of central clearance n The Hong Kong Interbank Clearing Ltd. By Mr. LAU san-fat CH 3 -Banking & Financial Systems 5
Central Bank Functions in HK n Banking supervision n n The Hong Kong Monetary Authority Execution of monetary policies n n Since the abolition of the interest rate agreement among banks, monetary policies in HK are restricted. The HK Monetary Authority could mainly aim at stabilizing the exchange rate & maintaining the linked exchange rate system. By Mr. LAU san-fat CH 3 -Banking & Financial Systems 6
Services of Commercial Banks 1. Taking deposits 1. Demand deposits, savings deposits, time deposits & negotiable certificates of deposits 2. Granting loans 1. Fixed loans and overdraft 3. Financing imports or export trade 1. By issuing letters of credit (L/C) & discounting bills of exchange By Mr. LAU san-fat CH 3 -Banking & Financial Systems 7
Services of Commercial Banks 4. Other services 1. Issuing gift cheques and cashier’s order or bank draft 2. Providing credit cards & mortgage 3. Providing ATM machines services 4. Sending remittance overseas 5. Dealing in foreign currencies, gold & shares 6. Offering insurance services By Mr. LAU san-fat CH 3 -Banking & Financial Systems 8
Services of Merchant Banks 1. Taking large-amount deposits from companies & investors 2. Providing financial advisory service to companies 3. Underwriting new shares after inviting public subscription 4. Providing (retirement) fund management services 5. Arranging syndicated loans By Mr. LAU san-fat CH 3 -Banking & Financial Systems 9
The Three-tier System of Deposit-taking Institutions 1. Licensed banks (lb) 1. Examples: the Hong Kong and Shanghai Banking Corporation Ltd. , and the Standard Chartered Bank 2. Restricted licensed banks (rlb) 1. Example: the Citicorp International Ltd. 3. Deposit-taking companies (dtc) 1. The JCG Finance Company Ltd. By Mr. LAU san-fat CH 3 -Banking & Financial Systems 10
The Three-tier System of Deposit-taking Institutions LB Min. paid-up $150 capital million Types of All types deposits Min. amount Any of deposits amount Maturity of Any deposit maturity By Mr. LAU san-fat RLB $100 million DTC $25 million Time deposits & NCDs $500 000 $100 000 Any maturity CH 3 -Banking & Financial Systems Min. 3 months 11
Financial Markets in HK 1. Major financial markets: 1. 2. 3. 4. 5. The The The Money Market (short-term liquid assets) Capital Market (shares & bonds) Foreign Exchange Market Futures Market Gold Market 2. It is supervised by the Securities and Futures Commission of Hong Kong with the Securities and Futures Ordinance. By Mr. LAU san-fat CH 3 -Banking & Financial Systems 12
Factors Turning HK into an International Financial Centre 1. 2. 3. 4. 5. 6. Favourable geographical position Favourable time zone location Well-developed financial services Advanced telecommunications facilities Absence of exchange control Favourable government policies (laissezfaire policy & low tax rates) 7. Increasing economic links with the Mainland By Mr. LAU san-fat CH 3 -Banking & Financial Systems 13
Contributions of a Financial Centre to HK Economy 1. Speeding up economic growth 2. Increasing economic links with the rest of the world 3. Increasing employment opportunities By Mr. LAU san-fat CH 3 -Banking & Financial Systems 14
Скачать презентацию HKCEE Macroeconomics n Chapter 3 Banking and Financial
cc722273de731756a4c7b8344c3d96bd.ppt