A SENIOR Bank of China official says there is no need for more mainland-funded banks in Hongkong, apart from the Po Sang Bank, to handle yuan business.

Mr Huang Diyan, director of Bank of China's Hongkong and Macau Management Office, said yesterday that Po Sang Bank, a member of the Bank of China Group, was sufficient to meet local demand.

''But if there is huge demand for the service in future, we will re-consider our policy,'' said Mr Huang.

Earlier reports said another Hongkong institution would be granted the right to handle yuan business by the middle of this year.