HK BANKING SYSTEM RESILIENT: CE

(To watch the full media session with sign language interpretation, click here.)

The banking system in Hong Kong is very resilient and properly regulated, Chief Executive John Lee said today.

Mr Lee made the remarks ahead of this morning’s Executive Council meeting in reply to questions from reporters on the Credit Suisse takeover.

“I am aware of the crisis that is being looked at seriously because of the Credit Suisse takeover. The Swiss National Bank has already indicated that they will be helping in dealing with the crisis. Also, there are six central banks that have indicated that they will be providing sufficient US dollar liquidity to the market.

“The size of Credit Suisse’s business and their assets under management in Hong Kong are relatively small. The banking sector is operating smoothly and normally. The liquidity of the market is also very abundant. So both the Hong Kong Monetary Authority and the Securities & Futures Commission are monitoring the situation closely. We will be managing the risks.”

Mr Lee added that the Government is confident the Credit Suisse fallout will not affect Hong Kong in a significant way.

“We are in regular communication with different authorities around the world. So we will be having first-hand information about the situation of the market.

“It is important for everybody to know that the adequacy and liquidity level of the Hong Kong financial and banking sectors are very healthy and abundant to be able to handle the pressure in the market.”

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