THE proposed new clearing house for the banking system will be equally owned by the Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB), with an estimated set-up cost of about $100 million.
Joseph Yam, chief executive of the HKMA, said that there would be nine directors on the board governing the new clearing house.
While the HKMA will have two representatives, the HKAB will have three. Each note-issuing bank will have one, and one representative will come from the clearing house company.
The clearing house will raise funds from outside sources with guarantees extended by the HKMA and the three note-issuing banks in a 40-60 ratio.
The 60 per cent portion will be equally shared by the three banks.
The new clearing house is part of the exercise to move Hong Kong's next-day settlement system to real time gross settlement.
