Hong Kong Monetary Authority facts for kids
Logo of the Hong Kong Monetary Authority
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| Headquarters | International Finance Centre, Central, Hong Kong |
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| Established | 1 April 1993 |
| Chief Executive | Eddie Yue |
| Central bank of | Hong Kong |
| Currency | Hong Kong dollar HKD (ISO 4217) |
| Bank rate | 2.75% (as of 28 July 2022[update]) |
| Interest on reserves | None |
| Hong Kong Monetary Authority | |||||||||||||||||||||||
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| Chinese | 香港金融管理局 | ||||||||||||||||||||||
| Cantonese Yale | Hēunggóng gāmyùng gúnléihgúk | ||||||||||||||||||||||
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| Alternative Chinese name | |||||||||||||||||||||||
| Chinese | 金管局 | ||||||||||||||||||||||
| Cantonese Yale | Gām gún gúk | ||||||||||||||||||||||
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The Hong Kong Monetary Authority (HKMA) is like Hong Kong's main bank for the government. It helps keep Hong Kong's money and banking system strong and stable. The HKMA was started on April 1, 1993, when two government offices joined together. It reports directly to the Financial Secretary, who is a top government official in charge of Hong Kong's money matters.
Contents
What the HKMA Does
The HKMA has some very important jobs. Its main goal is to make sure the Hong Kong dollar (the money used in Hong Kong) stays stable. It also works to keep the banking system safe and reliable. This helps everyone who uses banks in Hong Kong.
The HKMA also helps the financial system work well and grow. It makes sure that money matters are handled fairly and honestly.
Issuing Banknotes
Did you know that the HKMA prints some of Hong Kong's money? It prints the ten-dollar banknotes. For other banknotes, like the fifty or one hundred dollar notes, the HKMA lets three special banks print them. These banks are The Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, and Bank of China.
How HKMA Keeps Money Stable
The HKMA uses a special system called the Linked Exchange Rate System. This system connects the Hong Kong dollar to the US dollar. This helps keep the value of the Hong Kong dollar steady.
Tools for Stability
To help keep the money stable, the HKMA works with other central banks in Asia and Australia. They have agreements to lend money to each other if needed. This helps make sure there's always enough money flowing in the financial system.
The Exchange Fund
The Exchange Fund is like a big savings account for Hong Kong. It holds a lot of money and assets. The HKMA uses this fund to help keep the Hong Kong dollar stable.
During the 1997 Asian financial crisis, some people tried to make the Hong Kong dollar lose its value. To protect Hong Kong's money, the government, through the HKMA, used the Exchange Fund to buy many shares in Hong Kong companies. This helped calm the market and stop the money from losing value. Many people later said this action helped save the market from a bigger crisis.
Banking System in Hong Kong
The HKMA also looks after the banks in Hong Kong. It makes sure they are stable and follow the rules.
Banking Licenses
Hong Kong has a "three-tier" banking system. This means there are different types of banks, like licensed banks and restricted license banks. The HKMA gives out licenses to these banks. This helps make sure that only trusted and well-run institutions can take your money.
In 2019, the HKMA started giving out licenses for "virtual banks". These are banks that don't have physical branches. You can do all your banking online or through an app.
HKMA Headquarters
The HKMA's main office is in a very tall building called the International Finance Centre (IFC) in Central, Hong Kong. They own many floors in Tower 2 of this building.
On the 55th floor, there's a special area where you can learn about Hong Kong's money history. There's also a library. The very top office, on the 88th floor, belongs to the Chief Executive of the HKMA.
Leaders of the HKMA
The person in charge of the HKMA is called the Chief Executive. This person is chosen by the Financial Secretary and serves for five years, but they can be chosen again.
List of Chief Executives
| No. | Name (birth–death) |
Term of office | Higher education | Previous role | Financial Secretaries Served | ||
|---|---|---|---|---|---|---|---|
| Start of term | End of term | Duration | |||||
| 1 | Joseph Yam Chi-kwong, GBM, GBS, JP 任志剛 (1948–) |
1 April 1993 | 30 September 2009 | 16 years and 183 days | University of Hong Kong (BSocSc) | Director of the Office of the Exchange Fund | Sir Hamish Macleod Donald Tsang Antony Leung Henry Tang John Tsang |
| 2 | Norman Chan Tak-lam, GBS, JP 陳德霖 (1954–) |
1 October 2009 | 30 September 2019 | 10 years and 0 days | Chinese University of Hong Kong (B.S.) | Director of the Office of the Hong Kong Chief Executive | John Tsang Paul Chan |
| 3 | Eddie Yue Wai-man, JP 余偉文 (1965–) |
1 October 2019 | Incumbent | 5 years and 266 days | Chinese University of Hong Kong (B.B.A.) University of London (LL.B, M.S.) Harvard University (M.B.A.) |
Deputy Chief Executive of the Hong Kong Monetary Authority | Paul Chan |
Deputy Chief Executives
The Chief Executive gets help from several Deputy Chief Executives. Here are some of the people who have held this important role:
- David Carse (1993–2003)
- Andrew Sheng (1993–1998)
- Norman Chan (1996–2005)
- Anthony Latter (1999–2003)
- William Ryback (2003–2007)
- Peter Pang (2004–2016)
- Choi Yiu-kwan (2005–2009)
- Eddie Yue (2007–2019)
- Arthur Yuen (since January 2010)
- Howard Lee (since February 2016)
- Edmond Lau (2021–2022)
- Darryl Chan (since November 2022)
Important Events
The HKMA has hosted big international meetings. In 1997, it hosted a meeting for the World Bank and the International Monetary Fund (IMF). This event helped show Hong Kong as a major financial center to the world.
The HKMA also hosted the 2022 Global Financial Leaders' Investment Summit. This summit brought together important financial leaders from around the world.
Images for kids
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The entrance to the HKMA building.
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Inside the HKMA Information Centre.
See also
- Economy of Hong Kong
- Banknotes of the Hong Kong dollar
- Hong Kong Note Printing Limited
- List of financial regulatory authorities by country
