The real time gross settlement system (RTGS) will not risk overload despite direct participation from restricted licence banks, the Association of Restricted Licence Banks and Deposit Taking Companies says.
Association chairman Alex Au Mo-cheung said participation in the system involved huge costs which all the restricted licence banks (RLBs) would not be willing to bear.
Even if the Hong Kong Monetary Authority (HKMA) extended settlement system membership - which is restricted to the 182 full-licence banks in Hong Kong - to include the territory's 62 restricted licence banks, only a 'handful' would eventually be expected to apply to join the system.
This 'handful' would create no additional capacity pressure on the system, Mr Au said.
Restricted licence bank participation had been one of the major issues raised two years ago when the authority's proposal to implement the system was under consultation.
The authority finally determined it would exclude restricted licence banks in the first phase of its operation.