Analyses | Regional and economic development | 2013-10-18 | Sing Tao

Banking challenges in post-financial tsunami era

According to assessment made by the Hong Kong Monetary Authority, the risks of loans extended to Mainland customers by local banks have increased amid a high level of Mainland credit-to-GDP ratio, recent rising default risk in Chinese enterprises and increasing non-performing loan ratio of the domestic banking sector. The Centre’s analysis this week examines the impacts on Mainland-Hong Kong banking sector in the development process of Mainland’s private banks. It reminds Hong Kong of the lessons learnt from the financial tsunami and suggests enhancing risk controls in the banking sector, in a move to facilitate healthy development of Mainland-Hong Kong financial systems.

The full version of the commentary is in Chinese only.