HKMA strikes a cautious note on territory’s banking sector

The Hong Kong Monetary Authority (HKMA) is closely monitoring the "latent systemic impact" of continued "rapid" credit expansion in the territory, according to its annual report published on April 30. The HKMA is specifically concerned the "unusually low interest margin" in the Hong Kong banking sector might drive excessive risk-taking by banks.

The HKMA called for banks to be "extra prudent" in their risk management, and added that, despite regarding the territory's banking sector as "robust",