Hong Kong increases bank capital levels on credit expansion fears

HKMA is first Asian regulator to implement Basel III counter-cyclical capital buffer

volume-control

The Hong Kong Monetary Authority (HKMA) has asked banks to hold an extra 0.625% layer of capital from January 2016 after observing an increase in both the credit-to-GDP ratio and the rent-to-price multiple, making Hong Kong the first country in Asia to implement the new Basel III measure.

The Basel III counter-cyclical capital buffer (CCB) provides regulators with an extra tool to protect against pro-cyclicality in the banking system. Credit expansion has outpaced economic growth in Hong Kong so

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here