Hong Kong Introduces Banking Legislation Bill 2026 to Modernize Regulations and Enhance Industry Efficiency

Banking Legislation (Miscellaneous Amendments) Bill 2026 gazetted

The Government published in the Gazette today (June 5) the Banking Legislation (Miscellaneous Amendments) Bill 2026, which serves to ensure that Hong Kong's banking legislation will continue to be fit for purpose and conducive to future developments amidst the evolving landscape of the banking industry.

The Bill covers amendments to the Banking Ordinance (BO) in the following areas: (i) regulation of bank holding companies; (ii) engagement of skilled persons for supervisory purposes; (iii) modernisation of enforcement provisions; (iv) simplification of the current three-tier banking system into a two-tier system; and (v) technical amendments to reduce the compliance burden and enhance regulatory clarity. The Bill will also make amendments to The Hong Kong Association of Banks Ordinance and the Financial Institutions (Resolution) Ordinance for enhancing operational efficiency and flexibility.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "Committed to fostering an optimal and attractive business environment, the Government has been dedicated to keep refining Hong Kong's financial regulations to align with the latest international standards and market dynamics. The relevant amendments will empower the banking industry to fully capture the immense opportunities presented by future market and technological developments."

The Chief Executive of the Hong Kong Monetary Authority (HKMA), Mr Eddie Yue, said, "The banking industry plays an indispensable role in enabling effective financial intermediation and the functioning of the financial system. These enhancements to banking legislation will ensure that our regulatory framework remains robust and conducive to the development of banks, thereby further strengthening Hong Kong's position as an international financial centre."

This series of amendments will help reduce the compliance burden on the banking industry, make regulatory requirements clearer and more effective, keep pace with market developments, and further align Hong Kong's banking regulation with relevant international standards. The HKMA conducted a series of public and industry consultations on the proposed legislative amendments between 2023 and 2025. Broad support for the proposals was received from the respondents.

The Bill will be introduced into the Legislative Council for the first reading on June 17.

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Property owners fined over $260,000 in total for not complying with removal orders

Three owners were convicted and fined $262,480 in total at the Fanling Magistrates' Courts on Tuesday (June 2) for failing to comply with removal orders issued under the Buildings Ordinance (BO) (Cap. 123).

The first case involved four unauthorised structures with a total area of about 77 square metres on a flat roof of two units in a residential building on Wan Tau Street, Tai Po. As the unauthorised building works (UBWs) were carried out without prior approval and consent from the Buildings Department (BD), two removal orders were served on the two co-owners under section 24(1) of the BO.

Failing to comply with the removal orders, the two co-owners had been prosecuted by the BD and were fined a total of $20,660 upon convictions by the court. As they persisted in not complying with the removal orders, they were prosecuted for the second time and were fined $171,960 in total, of which $51,960 was the fine for the number of days that the offence continued, upon convictions by the court.

The second case involved an unauthorised structure of about 20 sq m on a flat roof of another unit in the same building as the first case. As the UBW was carried out without prior approval and consent from the BD, a removal order was served on the owner under section 24(1) of the BO. Failing to comply with the removal order, the owner was prosecuted by the BD and was fined $90,520 in total, of which $30,520 was the fine for the number of days that the offence continued, upon conviction by the court.

A spokesman for the BD said today (June 5), "UBWs may lead to serious consequences. Owners must comply with removal orders without delay. The BD will continue to take stringent enforcement action and instigate prosecutions against owners again if they persist in not complying with removal orders, so as to ensure building and public safety."

Failure to comply with a removal order without reasonable excuse is a serious offence under the BO. The maximum penalty upon conviction is a fine of $200,000 and one year's imprisonment, and a further fine of up to $20,000 for each day that the offence continues.

Source: AI-found images