HKMA

The Hong Kong Monetary Authority (HKMA) is the government entity responsible for maintaining monetary and banking stability in Hong Kong. Established on 1 April 1993, it succeeded the Exchange Fund Advisory Committee and the Office of the Exchange Fund to consolidate monetary functions under one authority. The HKMA operates under the Financial Secretary of the Hong Kong SAR Government and reports directly to the Chief Executive.

The HKMA’s primary objectives are to preserve Hong Kong’s currency stability, safeguard the integrity of the banking system, and foster the development of the financial sector. It does this by managing the Exchange Fund, which underpins the linked exchange rate system that keeps the Hong Kong dollar pegged to the U.S. dollar within a narrow band. The authority also issues banknotes through the three note‑issuing banks and regulates the licensing of banks, ensuring compliance with prudential standards and conducting supervision to mitigate systemic risk.

In addition to its monetary functions, the HKMA promotes the development of Hong Kong as an international financial centre. It collaborates with domestic and overseas regulators, participates in global standard‑setting bodies, and implements initiatives such as the Faster Payment System and green finance frameworks. The authority also monitors market developments, provides liquidity assistance when needed, and conducts stress‑testing of financial institutions.

Governance of the HKMA is overseen by a board chaired by the Financial Secretary, with members including senior officials and industry experts. Funding comes primarily from the Exchange Fund, enabling the HKMA to act independently in pursuing its mandate of monetary stability and financial resilience.