HK banks

Hong Kong banks face liquidity squeeze

Banks in Hong Kong face an uncertain outlook thanks to persistently low interest rates and the migration of local-currency deposits into renminbi.
The forecast in Hong Kong is gloomy, according to KPMG's latest banking survey (AFP)

Hong Kong’s banking industry posted decent profits in 2010 as economic growth recovered to pre-crisis levels and unemployment and inflation stayed low, but the future does not look so bright

However, the rising supply-demand mismatch for Hong Kong dollar loans and tighter regulation have raised concerns about liquidity, while the banks’ reliance on strong loan growth could lead to a deterioration in asset quality, according to KPMG’s Hong...

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