Overview of Banks in Macau
Banks in Macau comprise one of the most significant components of Macau’s financial infrastructure. There are 39 financial institutions in total in the region with 12 local banks and 21 branches of banks from all across the world. Being rich in cultural resources, Macau forms one of the major tourist attractions, which builds the foundation of its economy besides gambling.
Due to its strategic location for tourism and leisure remarkable progress has been made in other avenues of economic diversification. This has allowed banks to expand their corporate resources towards investment in various other industries.
Table of contents
Structure of Banks in Macau
Banks in Macau offer individuals and institutions an opportunity to have resources to build their business or for personal affairs. Apart from the gambling and tourism sector, public works and construction are important consumer sectors for banks in Macau with the industry growing at a constant pace. The local banking sector is offering extensive financial support to various sections of the community and simultaneously contributing towards the overall infrastructure development. There is also an equal focus on supporting small and medium-sized projects as well.
Macau is an offshore financial center labeled as a tax havenTax HavenA tax haven is a place or a country with very low or nil rate of income tax. It provides a business-friendly macroeconomic environment, such as financial and economic stability, as well as financial secrecy from tax authorities. with a free port and no restrictions on the FOREX regimes. The financial business is regulated and supervised by the Monetary Authority of Macau. The section of Offshore non-finance business is controlled by the Macau trade & Investment Promotion Institute. Currently, there are 27 licensed banks in Macau and is also a hub of top commercial banks in Asia such as Banco Tai Fung and Industrial & Commercial Bank of China.
Since Macau is growing at a rapid pace for development and urbanization, the banking sector is required to match the other established banking hubs of Hong Kong and Singapore.
List of Top Banks in Macau
The top banks in Macau are:
#1. Bank of China
The Macau branch holds a complete banking license and offers services related to Corporation Banking, Personal Banking and associated financial services in Macau. It is stated as the largest overseas branch for the Bank of China. Recently, active expansion is taking place in:
- Investment Banking
- Structural Financing
- Comprehensive Cross-border banking services
- Internationalised professional services
For 2016, the bank had 36 sub-branches with a total assetBank Had 36 Sub-branches With A Total AssetTotal Assets is the sum of a company's current and noncurrent assets. Total assets also equals to the sum of total liabilities and total shareholder funds. Total Assets = Liabilities + Shareholder Equity base of over 540 billion Macanese Pataca (MOP) with an employee strength of 1,600 employees. While encouraging economic development and wealth creation for the society, local talents are offered a wide range of employment opportunities and social development.
#2. ICBC (Industrial and Commercial Bank of China) Macau
It was formerly known as Seng Heng Bank and is the third-largest locally incorporated bank in Macau. The bank holds 14 branches, 3 subsidiaries and 500 staff members in Macau. As the largest local bank, it has expanded its deposit-taking business by tailoring its products for retail clients, large corporate customers and government entities improving the level of services to customers. Some other efforts taken include:
- Integrated Risk Management Framework for handling Credit, Market, and Operational RisksOperational RisksOperational risk is the business uncertainty a company comes across in the industry while executing its everyday business operations. Such risks arise due to internal system breakdown, technical issues, external factors, managerial problems, human errors or information gap.
- Expansion of banking services to cater to Portuguese speaking countries as a development strategy.
- Trade Finance, Syndicated Loans, Investment Banking, Pre-settlement, Credit Card acquiring and Cash ManagementCash ManagementCash Management refers to the appropriate collection, handling, & disbursement of cash for ensuring financial stability & avoiding insolvency risk. activities.
#3. Tai Fung Bank
This top bank in Macau was founded in 1942 by several business tycoons from Macau and Hong Kong. For the purpose of strengthening its capacity, in 1984 the Bank of China (Beijing) was invited to participate as the Bank’s shareholders holding 50% of expected capital of MOP 160 million. Subsequently, by 1991, the bank increased its capital several times to cross the MOP 1 billion mark and for 2016 has total assets of MOP 151.9 billion.
They currently are operating 25 local branches with one branch in Shanghai as well. Along with the traditional services of deposits, loans and trade financingTrade FinancingTrade Finance is the funding of trade transactions (both domestic and international). It is conducted in the presence of both buyer and seller and can be facilitated with the help of various intermediaries like banking and financial institutions. services the bank is also involved in various financial development activities in Macau.
#4. Luso International Banking
The bank was registered in Macau in 1974 and subsequently became the subsidiary of Xiamen International Bank Co. Ltd (XIB) in 1985 which is the first joint-venture bank in China. The bank has since evolved as a commercial bank has total assets of MOP 100 billion in 2016 with the quality maintaining an optimal level.
It has an employee workforce of over 400 members with 13 branches located at prime locations which enables to cater to all classes of customers. The bank is aimed at offering the highest quality of products and services which will contribute towards the overall progress of Macau as a society.
#5. Banco Nacional Ultramarino
This was a Portuguese bank established in Lisbon, Portugal in 1864 with operations throughout the world, especially in Portugal’s overseas provinces. Later, it ceased to exist as an independent legal entity in Portugal post-2001 merger with Caixa Geral de Depósitos (Government-owned savings bank) and continues the banking operations under the brand name of Banco Nacional Ultramarin. It is the only other bank with Bank of China authorized to issue Macanese Pataca Bank NotesBank NotesA banknote refers to a country’s currency in the form of paper..
#6. OCBC Wing Hang Bank
Oversea-Chinese Banking Corporation Limited (OCBC) is a publicly listed financial services organization having its head office in Singapore. The Macau branch known as OCBC Wing Hang Bank Limited offers customers:
- A sophisticated network of banking activities
- Enhanced access to the market
- A wide range of products and services catered to the customized personal and business needs of the customers
This bank in Macau has its presence in various South-east Asian countries such as Macau, Singapore, Indonesia, and Greater China offering services such as:
- Wealth management services
- Asset ManagementAsset ManagementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor's risk tolerance.
- Stockbroking services
- Treasury services
#7. Banco Commercial De Macau (BCM)
BCM banks are one of the leading banks in Macau established in 1974 and serving its local customers and working for the development of the regional economy. It aids in supporting the main infrastructural investment projects and is involved with continuous maintenance of trade financing activities. The top bank in Macau provides a wide array of high-quality financial products and services ranging from loans, deposits, and insurance through its robust network of domestic retail outlets and other associated mediums.
The bank has always been evolving with the changing environment and has undergone restructuringRestructuringRestructuring is defined as actions an organization takes when facing difficulties due to wrong management decisions or changes in demographic conditions. Therefore, tries to align its business with the current profitable trend by a) restructuring its finances by debt issuance/closures, issuance of new equities, selling assets, or b) organizational restructuring, which includes shifting locations, layoffs, etc. plans in the recent time periods including:
- Corporate Image development
- Operations Organisation
- Renovation of Premises
- Technological Modernisations
#8. Novo Banco Asia
This bank in Macau was established in 1996 with a full banking license and was a Macau subsidiary of Novo Banco S.A. from Portugal. Since September 2017 our Bank’s name has changed to Banco Well Link S.A. (Well Link Bank). It specializes in Corporate services, Trade Finance and Private BankingPrivate BankingPrivate banking refers to a type of banking and financial service offered by certain banks only to high-net-worth individuals (HNWIs). Clients opting for this service are individually assigned a financial representative who personally takes care of their banking needs..
The organization has established networks with the companies in the Latin American and African regions which allows Chinese companies to spread in such regions an vice-versa. The bank offers encouragement and support to such Chinese companies that require funds for rapid expansion. The Net Profit for 2016 was MOP 1.13 million. The only other overseas branch of the bank is in Shanghai.
#9. Macau Chinese Bank (MCB)
MCB was formerly known as Finibanco (Macau) but was acquired by Winwise Holdings Limited (a subsidiary of Hong Kong Chinese Limited) since 2002. Hong Kong Chinese Limited is principally engaged in investment holding and indulges in services of investment holding, property investment, property development, hotel operations, project management, fund managementFund ManagementFund management is the process of a company taking a person's, company's, or another fund management company's financial assets (generally high net worth individuals) and investing them in companies that use those funds as an operational investment, financial investment, or any other investment in order to grow the fund., underwriting, corporate finance, securities brokerage, securities investment, financial investment, lending, banking, and other related financial services.
MCB also specializes in a wide range of services such as:
- Insurance (General, Commercial and Others)
- Financing services (SME Financing, International TradeInternational TradeInternational Trade refers to the trading or exchange of goods and or services across international borders. , Import – Export financing)
- Customer Deposits and Savings accounts [MOP/HKD]
- Securities Trading Services
- USD/EUR Time Deposits
#10. Banco Delta Asia
The bank was established in 1935 and is the 10th largest bank in Macau with 8 branches and 150 employees. The bank is currently allowed to accept deposits from North Korea through special sanctions which have been permitted by the U.S. Government.
This has been a guide to the Banks in Macau. Here, we explain their structure along with providing the list of top banks in the region. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –