Hong Kong Banking System Remains Strong

The HKMA is aware that rumours have been circulating that certain banks are experiencing financial difficulties. The HKMA has been monitoring the situation closely and considers that these rumours are without foundation.

The banking system in Hong Kong is strong and highly capitalised. Profits for local banks in the first nine months of this year compared well with those in the previous year and this provides a cushion for banks to cope with the current business environment.

As the IMF recently concluded after an assessment of the economy, the strength of the banking system in Hong Kong means that "it will be able to withstand the effects of the recent financial market volatility".

Hong Kong Monetary Authority
10 November 1997