HKMA to introduce 'maximum' countercyclical capital buffer next year
Hong Kong will introduce Basel III tool at 0.625% of CET1 capital in January and raise it to 2.5% by 2019
The Hong Kong Monetary Authority (HKMA) will introduce a countercyclical capital buffer requirement for local banks at the maximum phase-in level under the Basel III framework on January 1 next year.
Hong Kong has one of the world's priciest property markets and both credit-to-GDP and real-estate price-to-rent ratios are at "elevated levels," the HKMA said in a statement yesterday.
Gross domestic credit to the private sector was $660 billion (5.13 trillion Hong Kong dollars) in November
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