Hong Kong banks lagging in preparation for Basel II

Hong Kong's banks are lagging their European counterparts in preparing for Basel II with most still at the early stages of project planning, according to a report by consultants KPMG.

Only half of Hong Kong’s banks have started Basel-related projects for both credit and operational risk, compared with 71% of European institutions and 69% of institutions worldwide, the survey said. Moreover, a quarter of Hong Kong respondents are still in the process of establishing teams to address the new credit risk requirements outlined in Basel II. This compares with just 14% of European institutions.

None of the Special Administrative Region banks surveyed have moved beyond the

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