Regulatory Alerts2024-10-25
Added · Updated
Guideline on Authorization of Digital Banks
The Monetary Authority of Hong Kong issued this guideline to establish the principles for authorizing digital banks, which deliver services primarily through electronic channels. The document mandates that applicants maintain a locally-incorporated structure, possess a credible business plan, and implement robust technology risk management and customer protection measures. It further requires digital banks to adhere to standard capital and supervisory standards while providing a detailed exit plan to ensure orderly unwinding of operations if necessary.