The Hong Kong Monetary Authority (HKMA) sees no need for new players in the city’s virtual banking sector and has launched a one-month public consultation to rename virtual banks as digital banks to better reflect their current model. A review by HKMA shows that virtual banking, which began in 2020, has gained wide market acceptance with 2.2 million depositors, though none achieved profitability by the end of 2023. Despite this, aggregate operating income increased seven-fold and net losses narrowed by 15% from 2021 to 2023. HKMA chief executive Eddie Yue Wai-man stated that the current number of virtual banking licences is optimal and there is no strong justification for additional players at this time.