Summary of HKMA Circular: Complaints Watch (27th Issue) - February 2026
This document summarizes the key information and implications of the 27th issue of the Hong Kong Monetary Authority's (HKMA) "Complaints Watch" circular, dated 11 February 2026. This circular serves as a communication tool to inform Authorized Institutions (AIs) about banking complaint trends and to promote service improvements.
---
1. Document Overview
- Nature of Document: This is a semi-annual publication by the HKMA, titled "Complaints Watch," specifically the 27th issue.
- Purpose: The primary purpose of this circular is to share insights with the banking industry regarding banking complaints received by the HKMA. It aims to:
- Provide an overview of the latest complaint trends and emerging topical issues.
- Showcase good practices that AIs can adopt to enhance their customer service.
- Inform AIs about areas requiring attention and potential improvements.
---
2. Main Content
The 27th issue of Complaints Watch focuses on the analysis of banking complaints received by the HKMA in the preceding year, 2025, and provides guidance and recommendations for AIs.
- Overall Complaint Volume and Trend:
- In 2025, the HKMA received a total of 4,005 banking complaints.
- This represents a significant 16% year-on-year increase compared to the previous year.
- Primary Driver of Complaint Increase:
- The substantial rise in complaints was primarily driven by a 38% increase in complaints related to the operation of banking accounts.
- HKMA's Directive to AIs:
- The HKMA has explicitly reminded AIs of the need to strengthen their communication with customers.
- The objective of this enhanced communication is to minimise inconvenience experienced by customers.
- Sharing of Good Practices:
- The latest issue of Complaints Watch highlights and shares good practices relating to the upgrade of banking services. These practices are intended to serve as examples for AIs to emulate.
- Feature Article Focus:
- A significant portion of this issue is dedicated to a feature article.
- This article specifically underscores the importance of clearly displaying available account balance to customers. This suggests that issues related to the clarity and accessibility of account balance information are a notable concern.
---
3. Key Changes
While this circular is a report and guidance document rather than a policy-setting one with direct new regulations, it signifies an increased focus and attention from the HKMA on specific areas based on complaint data. The "key changes" are more in terms of the HKMA's heightened emphasis and the introduction of specific discussion points and recommendations.
- Increased Scrutiny on Account Operation Complaints: The significant rise in complaints related to account operations indicates a heightened focus by the HKMA on this area. AIs should expect increased scrutiny and potential follow-up if such complaints persist.
- Emphasis on Proactive Customer Communication: The HKMA's explicit reminder to strengthen communication signals a shift towards expecting more proactive engagement from AIs to manage customer expectations and resolve issues before they escalate into formal complaints.
- Highlighting the Importance of Account Balance Transparency: The dedicated feature article on displaying available account balance signifies this as a key area for improvement. This suggests a review of current practices by AIs and potential for future guidance or expectations around this specific disclosure.
- Introduction of New Best Practices: The circular shares "good practices relating to upgrade of banking service," which, while not mandatory policy changes, represent updated recommendations and industry benchmarks for service enhancement.
---
4. Important Dates
- Publication Date: The circular, containing the 27th issue of Complaints Watch, was published on 11 February 2026.
- Data Period: The complaint data analyzed in this circular pertains to the year 2025.
- Effective Date of Recommendations: The "good practices" and recommendations are effective immediately upon receipt of the circular. AIs are encouraged to review and adopt these practices promptly.
- No Specific Deadlines or Transition Periods: This circular is an informative and advisory document. It does not introduce new regulatory deadlines or transition periods for compliance with specific new rules. However, the HKMA's expectation for improvement in the identified areas is immediate.
---
5. Impact Scope
- Applicable Parties: The circular is addressed to All Authorized Institutions (AIs) operating in Hong Kong.
- Affected Institutions: All banks and other financial institutions licensed by the HKMA are directly affected.
- Degree of Impact:
- High Impact (for AIs with high complaint volumes in account operations): Institutions that have experienced a high number of complaints related to banking account operations will need to conduct a thorough review of their internal processes, customer service protocols, and communication strategies.
- Moderate Impact (for all AIs): All AIs are expected to review the shared good practices and the specific guidance on account balance display. They should assess their current practices against these recommendations and consider implementing improvements to align with HKMA's expectations.
- Information and Awareness: The circular serves as an important alert for all AIs to stay informed about emerging trends and the HKMA's supervisory priorities.
---
6. Compliance Requirements
While this circular does not impose new statutory compliance requirements, it outlines strong expectations for AIs to review and enhance their operations based on the insights provided.
- Review and Analysis:
- AIs are expected to review the content of the 27th issue of Complaints Watch, paying close attention to the trends, emerging issues, and good practices highlighted.
- Specifically, AIs should analyze their own complaint data from 2025 and compare it against the overall trends reported by the HKMA, particularly concerning account operations.
- Enhancement of Customer Communication:
- AIs must strengthen their communication channels and strategies with customers. This includes ensuring clarity, timeliness, and accessibility of information related to banking services and account management.
- Proactive communication regarding service upgrades, potential changes, and issue resolution is expected.
- Implementation of Good Practices:
- AIs should evaluate and adopt the good practices relating to the upgrade of banking services shared in the Complaints Watch. This may involve process improvements, staff training, or technology enhancements.
- Addressing Account Balance Display:
- AIs must give special attention to the feature article's emphasis on clearly displaying available account balance. This may necessitate a review of online banking interfaces, mobile app functionalities, ATM displays, and any other customer-facing touchpoints where account balances are shown.
- Ensuring that the displayed balance accurately reflects the customer's true available funds and is easily understandable is crucial.
- Reporting Requirements:
- This circular does not mandate specific new reporting to the HKMA. However, as part of their ongoing supervisory engagement, AIs may be asked to demonstrate their actions and improvements in response to the issues raised in Complaints Watch during future interactions or thematic reviews by the HKMA.
- Internal Action Plans:
- AIs are encouraged to develop internal action plans to address the identified areas for improvement. These plans should outline specific steps, responsibilities, and timelines for implementation.
- Contact for Queries:
- For any questions regarding the Complaints Watch, AIs are directed to contact the HKMA at bankcomplaints@hkma.gov.hk.
---
7. Technical Details
This section retains important technical terms, definitions, and metrics as presented in the circular.
- HKMA: Hong Kong Monetary Authority. The central banking authority responsible for maintaining monetary and banking stability in Hong Kong.
- Authorized Institutions (AIs): Entities licensed or authorized by the HKMA to conduct banking or deposit-taking business in Hong Kong. This includes banks, deposit-taking companies, and other regulated financial entities.
- Complaints Watch: A semi-annual publication by the HKMA that analyzes banking complaints received. It serves as a feedback mechanism to the industry.
- Complaint Volume (2025): 4,005 banking complaints.
- Year-on-Year Increase: 16% increase in total complaints from 2024 to 2025.
- Complaint Category: "Operation of banking accounts" refers to complaints related to the day-to-day management, functioning, and accessibility of customer bank accounts. This can encompass a wide range of issues, such as transaction errors, account closures, difficulty in accessing funds, unauthorized transactions, and issues with account statements.
- Increase in Account Operation Complaints: 38% increase.
- Good Practices: Demonstrated examples of effective and efficient service delivery that AIs can adopt to enhance customer experience and operational efficiency. These are typically derived from the HKMA's observations of industry performance and customer feedback.
- Available Account Balance: Refers to the amount of funds that a customer can readily access from their account. This is distinct from the total balance which might include uncleared funds or other restrictions. The clarity of displaying this figure is a key focus.
- Contact Email: bankcomplaints@hkma.gov.hk for inquiries related to Complaints Watch.
---
Conclusion:
The 27th issue of Complaints Watch highlights a concerning increase in banking complaints in 2025, primarily driven by issues with account operations. The HKMA is urging AIs to proactively enhance customer communication and to pay particular attention to the clear display of available account balances. While not introducing new regulations, the circular serves as a strong advisory, signaling the HKMA's continued focus on customer protection and service quality in the banking sector. AIs are expected to review their practices and implement necessary improvements to address the identified concerns and align with best practices.