Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business.
(a) It is often said that Hong Kong maintains a “three-tier banking system.” Critically review the key features of this system.
(b) Banks in Hong Kong are overly regulated by the Hong Kong Monetary Authority. Do you agree with this statement? Please cite three examples.