HKMA prescribes the right premises for AIs

Chris Hamblin

7 October 2019

A recently released letter, copied to the Hong Kong Association of Banks, supersedes letters issued on the same subject matter in the past. In it, Daryl Ho says that his regulatory body has given each authorised institution consent to treat the whole of the premises as specified below as being used for conducting that institution’s business.

The head office (irrespective of the proportion between bank and non-bank use of the building).
One main office (irrespective of the proportion between bank and non-bank use of the building).
Other offices where at least 50% of the floor area is used for banking purposes.

Any offices that do not answer to these descriptions should be treated as though they conduct the AI’s business according to the actual percentage of their floor area that is used for that purpose. Ho adds: "To avoid doubt, an AI should treat premises as for providing housing or amenities for its employees based on the actual percentage of floor area used for that purpose."