The Financial Secretary, Mr John Tsang, announced today (Tuesday) two new precautionary measures to further strengthen confidence in Hong Kong's banking system:
Both measures take immediate effect and will remain in force until the end of 2010, when a decision will be taken in the light of international financial conditions on whether they should be extended.
Mr Tsang stressed that he did not expect that the new arrangements would need to be triggered, since the Hong Kong banking sector was fundamentally sound.
Commenting on the measures, the Chief Executive of the Hong Kong Monetary Authority, Mr Joseph Yam, said that these were precautionary and pre-emptive measures designed to further strengthen confidence in the local banking system. "The banking sector in Hong Kong continues to be healthy and robust, with capitalisation well above international requirements. Public confidence in the banking system remains strong. However, events around the world in recent weeks make it prudent for us to introduce these arrangements to bolster confidence and safeguard banking stability. The measures are also consistent with global efforts to support financial stability," Mr Yam said.
For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Peggy Lo, Manager (Press), at 2878 1687
Hong Kong Monetary Authority
14 October 2008