Bank license changes possible after updated law

A new type of bank license with a restricted scope of business may be issued under the updated laws for the financial system, the Monetary Authority of Macao (AMCM) has announced.

The updated law will be enacted today.

The authority highlighted several aspects in the updated law. Room for newer types of banking licenses exists, the AMCM noted, and a new type of license for banks with a restricted scope of business will be introduced. Temporary licenses may be issued for financial technology projects to enable flexibility.

The law will also aid improved local supervision and alignment with international monitoring bodies. The AMCM said regulations for credit institutions will be aligned to international industry standards. Qualifications and the responsibility of the managerial and supervisory bodies of credit institutions will be upgraded to refine “effective governance,” the AMCM added.

Administration will also be “refined” with simplified procedures for bond issuance. As a result of the “refinement,” the issuance of bonds will be reviewed. Issuance will then be approved by registration. This adjustment is to cope with bond market developments, the AMCM said.

Penalties for illegal financial activities will also be increased. Those who accept savings and issue repayable sums that break the law will face tougher sentences. Criminal liabilities have also been added where violators are legal entities.

In recent years, the Macau government has been striving to transform Macau into a new financial hub for China. It was said Beijing has shown support through the issuance of national bonds in Macau. AL