Banking system will stand testing year for Yue

Hong Kong's monetary market operated in an orderly manner last year, with deposits in the banking system increasing by

7 percent, reflecting the upbeat sentiment of investors and enterprises, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said, predicting the momentum will continue.

The capital adequacy ratio at banks also reached 21 percent, indicating strong stability.

Yue said yesterday the global economy is uncertain and volatile this year due to factors like geopolitics, especially from the incoming Trump administration but that our financial system is healthy and stable and risk-response plans will be drawn up.

In other news, the taskforce on small and midsize enterprise lending, which was jointly established by the HKMA and the Hong Kong Association of Banks in August, has handled more than 400 cases in the past few months, according to Yue.

He stressed that the HKMA will work with banks to assist local SMEs to upgrade and transform themselves this year.

June Chen