Introduction
The Hong Kong Association of Banks ("HKAB") was created by The Hong Kong Association of Banks Ordinance, Cap.364 ("Ordinance") in 1981 to replace the Exchange Banks' Association. The Ordinance provides a framework for the Government to exchange views with the banking sector for the further development of the industry.

Although banking licences are granted by the Hong Kong Monetary Authority ("HKMA"), no fully licensed bank can operate in the Hong Kong Special Administrative Region ("HKSAR") without being a member of HKAB and is thus subject to HKAB's rules. Its members are the banks, not their employees. HKAB is under the auspices of its member banks, which are represented by their designated representatives in general meetings. Each member bank must designate a senior executive to represent it vis-à-vis HKAB at meetings.

Role of HKAB

• To promote the interests of fully licensed banks in Hong Kong and after consultation with the Financial Secretary to make rules for the conduct of banking business.
• To be a focal point for consultation on law reform, new legislation and regulatory matters.
• To form a sounding-board for the Government and other relevant bodies on general business and banking issues.
• To offer a channel of communication among its members and with third parties.
• To promote best practice to members and provide information service such as issuing circulars on lost items of payment instruments.
• To organise or sponsor events on topical issues with distinguished speakers.

For a fuller description of the objects of HKAB, please refer to section 4 of the Ordinance.