Banking
Definition of bankers
Commercial definition vs legal definition.
Bills of Exchange Ordinance (Cap. 19) (BEO) S.2:
• “banker" includes a body of persons, whether incorporated or not, who carry on the business of banking.
BO s.2:
• "banking business" means the business of either or both of the following-
(a) receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than the period specified in item 1 of the 1st Schedule of BO or with a period of call or notice of less than that period;
(b) paying or collecting cheques drawn by or paid in by customers;
BO s.16:
• "banking license" means a banking license
A person or persons who runs a business where it is to collect money from public put into account, pay and collect checks.
BO has no mention of lending; hence lending money/mortgages is not a requirement for a bank in a banking business.
Moneylender vs banks
Moneylender is not a bank, different laws that deals with it and no statutory protection. E.g. regarding cheques, collection of money
- Moneylender has lending in its business, banks do not
- Moneylender lends its own money, bank lends public money
- Easier to be money lender in HK (UA, E Promise)
Practical significance
• Moneylenders Ordinance (Cap. 163) (MO):
– “money lender" means every person whose business (whether or not he carries on any other business) is that of making loans or who advertises or announces himself or holds himself out in any way as carrying on that business, but does not include-
(a) a person specified in Part 1 of Schedule 1 of the MO; or
(b) as respects a loan specified in Part 2 of Schedule 1 of the MO, any person who makes such loan.
• Banks lends public money.
– Can be sued for conversion of cheques, but have certain amount of protection (ss. 59, 69, 79, 80, 82-84 and 86 of BEO).
– Criminal offence.
• Moneylender lend own resource to continue business.
– Consequences:
•
Commercial definition vs legal definition.
Bills of Exchange Ordinance (Cap. 19) (BEO) S.2:
• “banker" includes a body of persons, whether incorporated or not, who carry on the business of banking.
BO s.2:
• "banking business" means the business of either or both of the following-
(a) receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than the period specified in item 1 of the 1st Schedule of BO or with a period of call or notice of less than that period;
(b) paying or collecting cheques drawn by or paid in by customers;
BO s.16:
• "banking license" means a banking license
A person or persons who runs a business where it is to collect money from public put into account, pay and collect checks.
BO has no mention of lending; hence lending money/mortgages is not a requirement for a bank in a banking business.
Moneylender vs banks
Moneylender is not a bank, different laws that deals with it and no statutory protection. E.g. regarding cheques, collection of money
- Moneylender has lending in its business, banks do not
- Moneylender lends its own money, bank lends public money
- Easier to be money lender in HK (UA, E Promise)
Practical significance
• Moneylenders Ordinance (Cap. 163) (MO):
– “money lender" means every person whose business (whether or not he carries on any other business) is that of making loans or who advertises or announces himself or holds himself out in any way as carrying on that business, but does not include-
(a) a person specified in Part 1 of Schedule 1 of the MO; or
(b) as respects a loan specified in Part 2 of Schedule 1 of the MO, any person who makes such loan.
• Banks lends public money.
– Can be sued for conversion of cheques, but have certain amount of protection (ss. 59, 69, 79, 80, 82-84 and 86 of BEO).
– Criminal offence.
• Moneylender lend own resource to continue business.
– Consequences:
•