BANKING SYSTEM OF MACAO

The Monetary Authority of Macao (AMCM) was established in 1989 with the function of a quasi-central bank and the power to supervise the financial system of Macao. The Financial System Act was promulgated in 1993 with the introduction of reforms placing great emphasis on preventative actions, highlighting particularly prudential rules for controlling entry requirements, monitoring the suitability of qualified shareholders and managers, new operating risks and consolidated supervision of financial groups. The Act adopts the recommendations of the Basle Committee on Banking Supervision and the efforts of the European Union to achieve harmonization in banking legislation while drawing on the experiences of countries and territories whose financial systems are similar to Macao's.

Under the Financial System Act, the following licenses are granted on a case by case basis with the special and prior authorization of the Chief Executive of Macao SAR, on advice from AMCM: -
a) incorporation of credit institutions in Macao;
b) opening of branches in Macao of credit institutions incorporated overseas;
c) setting up of subsidiaries and opening of branches and representative offices overseas by credit institutions incorporated in Macao and
d) setting up of financial intermediaries and financial institutions other than credit institutions, excluding those regulated by special legislation.

In addition, under Decree-Law no. 58/99/M of 18th October 1999 of Offshore Service Regime, banking licenses will also be granted subject to prior authorization of the Chief Executive of Macao SAR, on advice of AMCM.
At present, there are 27 banks, out of which 12 are locally incorporated (including the postal savings office) and 15 are branches of overseas banks. With the exception of three off-shore banks, all the banks in Macao are retail banks with full banking license. In addition, there is a finance company, with restrictive banking activities, which was authorized under Decree-Law no. 15/83/M of 26th February; and a non-bank credit institution, which dedicates to the issuing and management of the electronic money stored value card services, was authorized under Decree-Law no.32/93/M of 5th July.

There are following banks licensed to operate in Macao:

Wing Hang Bank Limited
Delta Asia Bank Limited
China Construction Bank (Macau) Corporation Limited
Seng Heng Bank Limited
Banco Comercial de Macau S.A.
The Macau Chinese Bank Ltd
Banco Espírito Santo Asia Limited
Banco Nacional Ultramarino (BNU) Macau
Banco Weng Hang S.A.
HSBC Macau
Luso International Banking (LIB) Ltd
Tai Fung Bank Ltd