For decades, Hong Kong has stood out as a financial hub in the world. It has branches of over 200 banks from other countries that have come to enjoy the lovely business environment. As an island, Hong Kong has established a very stable banking system that cultivates independence to guarantee depositors of extra security for their deposits.
Because of the numerous political risks that characterize the western banking system, you can only be sure of securing personal or corporate deposits by opening an offshore account in Hong Kong. Since Hong Kong is not under the jurisdiction of your western political system, having an offshore account will give you peace of mind knowing that it cannot be frozen, the deposit is available all the time, and interest rates are very high.
As you make the decision to open a bank account, here are four main things you need to know about the banking systems in Hong Kong.
Hong Kong uses a three-tier banking system
Hong Kong operates a three-tier banking system. This means that there are licensed banks, deposit-taking companies, and restricted license banks. The license banks operate the current and saving accounts and can manage deposits of any size. These are the main banks that people seeking to open offshore accounts should go to. The banks include local banks and international financial institutions such as DBS Bank, Hang Seng Bank, and Standard Chartered bank.
Other types of banks include the deposit-taking companies that are only licensed to engage in specialized activities. The last tier of the banking system is the restricted license banks that are only allowed to trade in the capital markets.
Most banks require you to travel physically to Hong Kong to open an account
Most of the banks in Hong Kong only allow people to open accounts after presenting themselves in person. They are interested in knowing their clients and will often decline applications done outside the country. You are required to visit the banks during the working hours (9am to 4:30pm) to present personal documents and make the request.
Most banks have minimum deposits requirements and charge maintenance fees
Once you open a bank account, the deposits will be charged a maintenance fee levied twice in a month. Besides, you will also be charged some fee if the deposit falls below the recommended fee balance. Other charges you should be aware of include outbound transfer fees, and penalties for immature account closure.
Seeking help from experts will raise the chances of getting an account with over 99%
When people decide to open bank accounts in Hong Kong, most of the applications are declined. Some banks simply decline without giving a reason while others only say you are not qualified. If you try to open the account on your own, the chances of success stand at less than 10%.
However, you can raise the chances of getting the account by over 99% by contacting experts based in Hong Kong for years. They understand the banking system as well as the legal system very well to help you.