Hong Kong rules out more virtual banks, citing need for ‘healthy development’ of sector

The Hong Kong Monetary Authority (HKMA) has ruled out issuing new virtual bank licences after a review found that the eight players currently operating were adequate and that it may stunt the sector’s development.

“Looking ahead, with the diversity of virtual banks and incumbent banks, the HKMA considers that the current number of virtual banking licences is optimal and does not see any strong justification to introduce more new virtual bank players to the market at this juncture,” Eddie Yue Wai-man, CEO of the HKMA, said in a statement on Tuesday.