HKMA: Preliminary figures for specific classification loan ratio in Q3 remain stable, credit risk overall controllable.
HKMA Deputy Chief Executive Arthur Yuen said that the preliminary figure for the specific classification loan ratio in the third quarter remained stable compared with the end of the second quarter, and credit risk is currently overall controllable.
At the meeting of the Panel on Financial Affairs, HKMA Deputy Chief Executive Arthur YUEN said that the preliminary figures for the specific classification loan ratio in Q3 remained stable compared with the end of Q2. Banks' provisioning levels are adequate, at about 65% excluding collateral, and reaching 150% after deducting the realisable value of collateral. He considered the current credit risk to be overall controllable.
He pointed out that in the first nine months of this year, total deposits and loans of banks both rose 7.7%, and on an annualised basis exceeded 10% and 10.2% respectively. Loans for use in Hong Kong, loans for use outside Hong Kong, and trade financing all increased rapidly, with trade financing growing 20% in the first nine months. The banking sector's capital levels, liquidity ratios and profitability parameters all performed well, and he expressed confidence in bank stability.
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