| |
| |
![]() |
| |
|
| |
|
| |
|
HONG KONG: Hong Kong's de facto central bank has sought to calm fears about the impact of the US global credit crunch on Hong Kong. It said financial woes at ailing US mortgage giants Fannie Mae and Freddie Mac will have little impact on local banks.
According to a consultant hired by the Hong Kong Monetary Authority (HKMA), a review of the local banking sector showed that Hong Kong has one of the most robust banking systems in the world. The monetary authority also assured the public that Hong Kong banks are safe from harm.
HKMA Chief Executive Joseph Yam said only 0.1 per cent of total assets of local banks have been invested in the two companies.
David Carse, Review Consultant, said: "The US authorities have made it clear that debt carries at least an implicit guarantee of the US government. So I don't think there is a problem with debt issued by these companies.
"The Hong Kong banks have good capital adequacy and good liquidity, so I think they are well able to cope with problems arising in the US."
He said Hong Kong bounced back very quickly from the 1997 Asian financial crisis, and its growing economic integration with the Chinese mainland will create new business opportunities for the banking sector.
Although HKMA said Hong Kong's banking sector remains strong, it stressed it cannot entirely escape the effects of the US sub-prime crisis. The authority said banks must continue to be cautious as it is uncertain what lies ahead. - CNA/vm
|
