HKMA strikes a cautious note on territory’s banking sector
Hong Kong Monetary Authority concerned about continued credit expansion in the territory and contagion risk from the European sovereign debt crisis
The Hong Kong Monetary Authority (HKMA) is closely monitoring the "latent systemic impact" of continued "rapid" credit expansion in the territory, according to its annual report published on April 30. The HKMA is specifically concerned the "unusually low interest margin" in the Hong Kong banking sector might drive excessive risk-taking by banks.
The HKMA called for banks to be "extra prudent" in their risk management, and added that, despite regarding the territory's banking sector as "robust"
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