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Following is a question by the Hon Albert Chan and a reply by the Acting Secretary for Financial Services and the Treasury, Ms Julia Leung, in the Legislative Council today (December 9):
Question:
I have recently received complaints from quite a number of members of the public pointing out that instead of setting up branches or providing self-service banking facilities in remote areas, some note-issuing banks (NIBs) have continued to close branches and self-service banking facilities recently, causing great inconvenience to residents of the districts. In this connection, will the Government inform this Council:
(a) whether it knows the number of branches and self-service banking facilities set up by the various NIBs in Hong Kong in each of the past four years, and whether it has assessed if these banks have an obligation to provide adequate basic banking services for members of the public;
(b) given that NIBs have continued to reduce the number of branches in recent years, whether the authorities will reconsider revoking the NIB status of such banks; if they will, of the details; if not, the reasons for that; and
(c) given that quite a number of members of the public have indicated that the services currently provided by non-NIBs can serve the needs and interests of the general public better than those of NIBs, whether the authorities will reconsider granting NIB status to such banks; if they will, of the details; if not, the reasons for that?
Reply:
President,
(a) According to the information provided by the Hong Kong Monetary Authority, the number of branches and automated teller machines (ATMs) maintained by the three note-issuing banks (NIBs) did not exhibit great change during the past four years. As at end October 2009, the three NIBs maintained a total of 413 branches, which was slightly less than the relevant number of 416 as at end 2006. The total number of ATMs was 1,364 as at end October 2009, which was up by 174 from the relevant number of 1,190 as at end 2006. Please refer to Annex for details.
The responsibility of the NIBs is to maintain an effective and efficient network for distribution of banknotes so that banknotes issued by them can be distributed through the banking system in a speedy manner to meet the demand of the public.
As regards the provision of basic banking services, the NIBs are no different from other banks. Decisions made by these banks are all based on commercial considerations.
(b) The main functions of the NIBs are to maintain the stability of Hong Kong's notes issuance operation and ensure the stable supply of banknotes according to the Legal Tender Notes Issue Ordinance (Cap. 65) and the terms and conditions specified by the Financial Secretary. The NIBs are responsible for safekeeping and handling the withdrawal and storage of banknotes, including the maintenance of an effective and efficient network for distribution of banknotes, to meet the demand of the banking system. We are of the view that the current networks of branches and ATMs maintained by the three NIBs are able to meet the demand of the public for banknotes.
(c) Currently, the three NIBs in Hong Kong are able to provide an adequate and stable distribution network of banknotes to the public through their respective networks. We therefore do not see the need to increase the number of the NIBs.
Thank you, President.
Ends/Wednesday, December 9, 2009
Issued at HKT 15:15
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