The responsibility for promoting the safety and soundness of the banking system is shared among three departments within the HKMA:

• the Banking Supervision Department handles the day-to-day supervision of authorized institutions (AIs)¹
• the Banking Policy Department formulates supervisory policies to promote the safety and soundness of the banking sector
• the Banking Development Department formulates polices to promote the development of the banking industry.
  

¹Institutions authorized under the Banking Ordinance to carry on banking business or the business of taking deposits. Authorized institutions are divided into three tiers: licensed banks, restricted licence banks and deposit-taking companies.