Hong Kong is considered to be the center for trade and commerce in Asia. As such, the financial service in Hong Kong has become the foremost service of the country. Hence before incorporating Hong Kong company, all customers will need to know the various categories of the bank so that you can decide on which bank you will open your account with.
Various Types of Banks in HongKong
In Hong Kong, there are mainly three types of banks as per the Monetary Authority of HongKong. These three categories of banks in HongKong are Full Banks, Wholesale Banks, and Offshore banks.
The full bank is those that offer a whole range of banking business which is permitted under the Banking Act. This kind of bank offers services such as ATMs, credit cards, debit cards, loans, mortgages, etc. The biggest advantage of this type of bank is that it has an extensive banking branch. Some of the reputed banks that come under this category are Development Bank of HongKong (DBS), United Overseas Bank (UOB) and Overseas Chinese Banking Corporation (OCBC).
Wholesale banks are almost the same as that of the full bank. The only difference between the full banks and wholesale banks is that the wholesale bank operates as a branch of the foreign bank. These types of banks do not carry out any kind of Hong Kong Dollars retail activities. They also do not operate saving accounts which are denominated in Hong Kong dollar. Apart from that, these types of the bank also do not operate saving accounts that are denominated in foreign currency.
The third type of bank is an offshore bank. It provides the same service as of the full bank and wholesale bank but it is transacted through Asian Currency Units (ACU). These type of bank conducts all the foreign currency transaction through the Asian Dollar Market.
Hence, after knowing the various types of banks available in Hong Kong, it becomes easier for you to decide on which banks to open international accounts in Hong Kong. You can open the account on the type of bank which suits your purpose and is convenient for you.