Guideline on specific consent to use banking names and descriptions (2026-02-27)

This document summary provides a comprehensive overview of the Hong Kong Monetary Authority (HKMA) guidelines concerning specific consents for non-bank persons to use banking names or descriptions, as stipulated under section 97(1) of the Banking Ordinance.

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This document is a guideline issued by the Monetary Authority (MA) of the Hong Kong Monetary Authority (HKMA) to provide detailed guidance on the MA's policy for granting specific consents under section 97(1) of the Banking Ordinance. The primary purpose of these guidelines is to regulate the use of words, expressions, or letters that could lead the public to believe a non-bank entity is a licensed bank or is engaged in banking business in Hong Kong. It aims to protect the public from potential deception and maintain the integrity of the banking sector.

The core of the document outlines the legal framework, the HKMA's policy on granting consents, the criteria for evaluation, potential conditions attached to consents, and the procedure for applications.

Legal Framework (Section 97 of the Banking Ordinance):

• Prohibition: Section 97(1) of the Banking Ordinance makes it an offense for any person, other than a licensed bank or a central bank, to use:
• The word "bank" or its derivatives in English, or any translation in other languages.
• The Chinese expression "ngan hong" (銀行).
• The letters "b", "a", "n", "k" in that order, in their business name or description in Hong Kong.
• Any representation that they are a bank or carrying on banking business, in any form (e.g., bill heads, letter paper, notices, advertisements).
• MA's Consent: The MA has the discretion to grant consent for such usage, either generally, in specific cases, or for classes of cases.
• Exemptions: The Ordinance also provides for certain exemptions, details of which are elaborated in Chapter 7 of the HKMA's Guide to Authorization.
• Scope of "Banking Name or Description": For the purpose of these guidelines, a "banking name or description" is defined as anything falling under section 97(1)(a) of the Ordinance, explicitly including internet domain names and logos.

Policy on Granting Consent:
The MA's overarching policy is to prevent misleading the public. Consent will generally be denied if the use of a banking name or description could:

• Lead the public to believe the entity is a licensed bank.
• Create the impression that the entity is under the direct supervision of a banking supervisor.
• Be part of a deliberate attempt to mislead or defraud the public.

Criteria for Granting Consent:
When exercising discretion to grant consent, the MA considers the following criteria, with the first being over-riding:

1. Indicative Nature of Banking Activity: This is the over-riding criterion. The MA assesses the extent to which the proposed name or description inherently suggests banking activity. Certain names are deemed inherently misleading and will not receive consent, regardless of the actual business conducted. Examples of clearly misleading names include:

• "ebank"
• "ibank"
• "cyberbank"
• Specified terms listed under section 97(6) of the Banking Ordinance, such as "merchant bank" and "investment bank".
  The MA believes that allowing such names by non-banks blurs the distinction between banks and non-banks and could set a harmful precedent.

1. Nature of Business Activities: If a name or description is not inherently misleading but *could* be depending on the context, the MA will examine the actual business carried out by the company. Consent will generally not be granted if the company engages in activities that are akin to various types of banking activity, even if such activities do not involve taking deposits.

1. Group Brand Name: This criterion is considered subsidiary to the other two. If the name is not clearly misleading and the company does not engage in banking-akin activities, the use of an existing, well-established brand name of a parent company (incorporated inside or outside Hong Kong) that includes a banking name may be a factor that influences the MA to grant consent. The use of the parent company's name must also be lawful in its place of incorporation.

Conditions for Consent:
The MA reserves the right to attach conditions to any granted consent. These conditions are designed to ensure continued compliance and prevent future misrepresentation. Common conditions include:

• Prohibition of Akin Banking Activities: The company must refrain from engaging in any activity that is akin to banking activity, both at the time of consent and in the future.
• Information Provision: The company must provide the MA with requested information, including certified true copies of audited accounts and annual reports, to verify compliance with consent conditions.
• Advance Notice of Name/Description Changes: The company must provide the MA with at least 7 working days' advance written notice of any intended changes to its name or description, including brand names, trademarks, and logos.

Procedure for Applications:
Companies wishing to use a banking name or description must formally apply to the MA *in advance* of their intended use. Each application is assessed on its individual merits.

Required Information for Applications:
Applicants must submit the following information, where applicable:

• Proposed name or description.
• Reasons for wanting to use the name or description.
• Detailed description of current or proposed business activities.
• Details on when and where the business will be or has been carried on.
• Date and place of incorporation.
• Certified true and correct copy of the current Memorandum and Articles of Association.
• Certified true and correct copy of the most recent audited accounts and annual report.
• Names and addresses of principal shareholders, directors, and chief executive officer.
• Contact information (address, telephone/fax numbers).
• Any other information the MA may require.

Application Submission:
Applications should be directed to the Licensing Team of the HKMA.

Application Review and Outcome:
Upon receipt, the MA will review the application and issue either a consent (with any applicable conditions) or a refusal as soon as practicable.

Compliance and Consequences:
It is crucial for companies granted consent to observe all attached conditions at all times. Non-compliance can lead to the withdrawal of the consent by the MA.

This document is a guideline issued by the MA. The provided text indicates the guideline was originally issued in November 2000 and was updated in December 2025. Therefore, the "key changes" are not within the scope of a single update but represent the consolidated policy as of the latest update. The core policy and criteria have remained consistent, focusing on preventing public deception. The guideline reinforces existing prohibitions under section 97 of the Banking Ordinance and clarifies the HKMA's approach to granting specific consents.

Key aspects that are reinforced or clarified include:

• Explicit definition of "banking name or description": Inclusion of internet domain names and logos.
• Prioritization of Over-riding Criterion: The "Indicative Nature of Banking Activity" is explicitly stated as the most important factor.
• Specific examples of prohibited names: "ebank", "ibank", "cyberbank", and specified terms from section 97(6).
• Clear distinction between clearly misleading and potentially misleading names: Different assessment approaches based on this distinction.
• Subsidiary role of group brand name: Emphasizing that it's a supporting factor only when other criteria are met.
• Detailed list of application requirements: Comprehensive information needed from applicants.
• Explicit mention of consequences for non-compliance: Withdrawal of consent.

• Original Issue Date: November 2000
• Latest Update Date: December 2025 (as indicated at the end of the document)
• Effective Date: The guidelines are effective from their issue and update dates. Consent must be sought *in advance* of using any prohibited name or description.
• Advance Notice for Changes: A minimum of 7 working days' advance written notice is required for any intended change in the company's name or description (including brand names, trademarks, logos, etc.).
• Transition Periods: No specific transition periods are mentioned. It implies that any entity currently using such names without consent should seek it immediately or cease usage.

• Applicable Parties:
• Non-bank persons/companies: This includes any entity that is not a licensed bank or a central bank.
• Entities considering using names or descriptions that contain "bank" or its derivatives, or the Chinese expression "ngan hong" (銀行), or the letters "b", "a", "n", "k" in sequence. This covers a broad range of businesses, from technology firms to financial advisory services, investment companies, and potentially even some fintech entities.
• Affected Institutions: All companies operating in Hong Kong or intending to operate there that might use or are considering using names that could be construed as "banking names or descriptions." This includes companies with online presences (websites, domain names) and those using logos.
• Degree of Impact:
• High impact for entities with potentially misleading names: These entities will likely face significant hurdles in obtaining consent and may need to rebrand entirely if their name is deemed clearly misleading.
• Moderate impact for entities with potentially context-dependent names: These entities will need to provide detailed justifications and demonstrate that their business activities do not resemble banking.
• Low impact for entities with clearly non-banking names: The guidelines will primarily serve to reinforce their existing compliance.
• Operational impact: All affected entities will need to factor in the application process, potential delays, and the need for ongoing compliance monitoring and reporting.

• Proactive Application: Any entity that is not a licensed bank or central bank and intends to use a "banking name or description" must proactively apply to the HKMA for written consent *before* commencing business with that name or description.
• Honest and Complete Disclosure: Applicants must provide accurate, truthful, and complete information as requested in the application procedure. This includes details of business activities, incorporation, financial status, and key personnel.
• Adherence to Conditions: If consent is granted, the applicant must strictly adhere to all conditions stipulated by the MA. Failure to comply can lead to the revocation of consent.
• Notification of Changes: A mandatory requirement is to provide at least 7 working days' advance written notice to the MA before making any changes to the name or description, including brand names, trademarks, and logos.
• Provision of Information: Companies must be prepared to provide further information to the MA upon request, such as audited accounts and annual reports, to facilitate ongoing supervision of compliance.
• Record Keeping: Maintaining records of applications, consents, and any correspondence with the HKMA is essential.
• Internal Compliance Review: Companies should conduct internal reviews of their names, descriptions, logos, and marketing materials to ensure compliance with section 97 of the Banking Ordinance and these guidelines.

• "Banking Ordinance": Refers to the primary legislation governing banking in Hong Kong.
• "Monetary Authority (MA)": The chief executive of the HKMA, vested with the authority to grant consents.
• "Hong Kong Monetary Authority (HKMA)": The central banking and regulatory authority for Hong Kong's monetary and banking systems.
• "Guide to Authorization": A separate publication by the HKMA detailing authorization requirements and policies, with relevant information found in Chapter 7.
• "Banking name or description": As defined within the guideline, this includes:
• The word "bank" or its derivatives (e.g., "banking," "banker").
• Translations of "bank" in any other language.
• The Chinese expression "ngan hong" (銀行).
• The sequence of letters "b", "a", "n", "k" in that order.
• Internet domain names.
• Logos.
• "Akin to banking activity": This is a crucial concept, defined implicitly by the HKMA's assessment. It generally refers to activities that are core to banking functions, even if they do not involve taking deposits. This could include lending, providing payment services, asset management, money broking, etc., depending on the context.
• "Specified terms under section 97(6) of the Banking Ordinance": These are specific banking terms that are explicitly protected and considered inherently misleading if used by non-banks. Examples given include "merchant bank" and "investment bank".
• "Certified true and correct copy": A document that has been officially verified as an accurate reproduction of the original.
• "7 working days’ advance written notice": A formal communication that must be submitted to the HKMA at least seven business days prior to any planned change.
• "Licensing Team of the HKMA": The specific department within the HKMA responsible for handling such applications.

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