HK bank lending higher in first quarter, report says

Business | 24 Apr 2020 5:28 pm

The first-quarter loans increased by 2.8 percent and 11.4 percent if calculated by the annual rate, accordign to a report to the Panel on Financial Affairs by the Hong Kong Monetary Authority.

The Hong Kong dollar loan-to-deposit ratio remained at 90 percent, as of the end of March.

All loan-to-deposit ration climbed  from 75 percent in the last year to 77 percent in the first quarter.

The liquidity of banks was steady. The liquidity coverage ratio on average this quarter for category 1 institutions was 160.4 percent, far more than the minimum requirement of 100 percent.

The ratio for category 2 institutions was 56.8 percent, higher than the minimum ratio of 25 percent.

HKAM  said the capital level of the banking system was sufficient.

The consolidated capital adequacy ratio for locally registered organizations was 20.7 percent, as of the end of 2019. The international minimum requirement is 8 percent.

The net interest margin of the Hong Kong retail banks widened from 1.62 percent in 2018 to 1.63 percent in 2019.

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