Hong Kong Ordinances

BANKING ORDINANCE - SECT 97

Restrictions on use of name "bank"

(Past version on 30/06/1997).

(1) Subject to this section, any person, other than a bank, or an institution
which is recognized as the central bank of the place in which it is
incorporated, who, without the written consent of the Monetary  Authority
given generally or in any particular case or class of case- (Amended 3 of 1990
s. 39; 95 of 1991 s. 37; 82 of 1992 s. 25; 49 of 1995 s. 32)

        (a)	uses the word "bank" or any of its derivatives in English, or 
any translation thereof in any language or uses the Chinese expression

"ngan hong" (銀行), or uses the letters "b", "a", "n", "k" in that order, in
the description or name under which such person is carrying on business in
Hong Kong; or (Amended 49 of 1995 s. 32)

   (b)  makes any representation in any bill head, letter paper, notice,
        advertisement or in any other manner whatsoever that such person is a
        bank or is carrying on banking business in Hong Kong, commits an
        offence and is liable-

        (i)    on conviction upon indictment to a fine at tier 7 and to
               imprisonment for 2 years; or (Amended 32 of 2001 s. 20)

        (ii)   on summary conviction to a fine at tier 5 and to imprisonment
               for 6 months. (Amended 4 of 1997 s. 27)

(1A) Where a bank-

   (a)  -(b) (Repealed 94 of 1993 s. 23)

   (c)  uses, in the name under which it carries on business as a bank in the
        place where it is incorporated, any of the terms to which subsection
        (1)(a) applies, nothing in subsection (1)(a) shall prohibit a
        local representative office of the bank from using the same name, or
        any translation thereof in any language, in the name under which the
        representative office is carrying on in Hong Kong the functions and
        activities of a representative office provided such name-

        (i)	is used in immediate conjunction with the term "representative 
office" in the same language as such name (which term, in the case of Chinese,
shall be the characters (代表辦事處); and

        (ii)   is not more prominent than such term. (Added 95 of 1991 s. 37)

(1AA) Where the Monetary Authority gives consent, or refuses to give consent,
under subsection (1), he shall, as soon as is reasonably practicable,
thereafter give notice in writing of the consent or the refusal to the person
who sought the consent and, in the case of the refusal, shall specify his
reasons in the notice for the refusal. (Added 32 of 2001 s. 20)

(1B) (Repealed 49 of 1995 s. 32)

(2) Nothing in this section shall apply to any association of banks formed for
the protection or promotion of their mutual interests or to any association of
employees of banks formed for the protection or promotion of the mutual
interests of such employees.

(3) Nothing in subsection (1)(a) shall prohibit a restricted  licence bank
using a specified term in the description under which the
restricted licence bank is carrying on in Hong Kong the business of taking
deposits. (Added 3 of 1990 s. 39)

(4) Where a restricted licence bank-

   (a)  is incorporated outside Hong Kong;

   (b)  is a bank in the place where it is incorporated; and

   (c)  uses, in the name under which it carries on business as a bank in the
        place where it is incorporated, any of the terms to which subsection
        (1)(a) applies, nothing in subsection (1)(a) shall prohibit the
        restricted licence bank from using the same name, or any translation
        thereof in any language, in the name under which the
        restricted licence bank is carrying on in Hong Kong the business of
        taking deposits provided such name-

        (i)	is used in immediate conjunction with the term "restricted 
licence bank" in the same language as such name (which term, in the case of
Chinese, shall be the characters specified in paragraph (a) of the
definition of "specified term" in subsection (6)); and

        (ii)   is not more prominent than such term. (Added 3 of 1990 s. 39)

(5) Nothing in this Ordinance shall affect the determination of any question
whether a restricted licence bank or a deposit-taking company is a bank for
purposes other than those of this Ordinance, and accordingly nothing in this
section shall prohibit a restricted licence bank or a deposit-taking company
from using any of the terms to which subsection (1)

   (a)  applies with reference to itself in any case where-

   (a)  it wishes to comply with or take advantage of any relevant 
        provision of law or custom; and

   (b)  it is necessary for it to use any such term in order to be able to
        assert that it is complying with or entitled to take advantage of that
        provision. (Added 3 of 1990 s. 39)

(6) In this section-

"description" (稱謂) includes any statement (whether or not in writing)
which uses any of the terms to which subsection (1)(a) applies where that
statement may be construed to mean that a person (howsoever described) is-

   (a)  a subsidiary;

   (b)  the holding company; or

   (c)  a subsidiary of the holding company, of a bank (and whether or not
        such bank is authorized or exists); (Added 49 of 1995 s. 32)

"relevant provision of law or custom" (有關法律或慣例的規定) means
any enactment, any instrument made under an enactment, any international
agreement, any rule of law or any commercial usage or practice which confers
any benefit on, or otherwise has effect only in relation to, a person by
virtue of such person being a bank;

"specified term" (指明詞語) means any of the following terms-

        (a)	"restricted licence bank" or "有限制牌照銀行"; 


        (b)	"merchant bank" or "商人銀行"; 


        (c)	"investment bank" or "投資銀行"; 


        (d)	"wholesale bank" or "批發銀行"; 


   (e)  a term specified by the Monetary Authority by notice in the Gazette to
        be a specified term for the purposes of this definition, (Amended 82
        of 1992 s. 25) and includes any derivatives of those terms in English
        or Chinese. (Added 3 of 1990 s. 39. Amended 49 of 1995 s. 32)

(7) Where, immediately before the commencement of the Banking (Amendment)
Ordinance 1995 (49 of 1995), a company was lawfully exercising the privilege
conferred upon it under subsection (1B) as in force immediately before that
commencement, then the company may continue to exercise that privilege as if-

        (a)	that subsection had not been repealed but the word "name" had 
been substituted for the word "title" in paragraph (a) of that subsection; and

        (b)	the definition of "specified bank" in subsection (6) as in 
force immediately before that commencement had not been repealed but the
word "authorized" had been substituted for the words "licensed under
section 16" in paragraphs (a) and (b)(i) of that definition. (Added 49 of 1995
s. 32)

"description" (稱謂)

"relevant provision of law or custom" (有關法律或慣例的規定)

"specified term" (指明詞語)