Chief Executive of the Hong Kong Monetary Authority: The current number of virtual bank licenses is appropriate and there is no need to introduce more participants

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said that looking ahead, with the diversified development of virtual banks and traditional banks, the HKMA believes that the current number of virtual bank licenses is appropriate, and there is no need to introduce more new virtual bank players in the market at this stage. In terms of business and financial performance, virtual banks faced challenges in the early stages of their operations, mainly affected by the outbreak of the new coronavirus, and none of the eight virtual banks had yet made a profit by the end of 2023. However, over the past three years, virtual banks have recorded moderate growth in their business and their operating performance has continued to improve. From the 2021 to 2023 fiscal years, their overall operating income increased sevenfold and their net losses narrowed by 15%. (HK01)