HKMA dismisses reports it will establish ‘bad bank’
Monetary authority says lenders’ balance sheets are healthy and their credit risks well managed
The Hong Kong Monetary Authority (HKMA) has said it has no intention of establishing a “bad bank”, after media reports suggested some of the territory’s lenders had discussed the idea as a way of dealing with non-performing loans.
The de facto central bank issued a statement on July 17 saying that neither it nor Hong Kong’s banks had any such plans. The HKMA said it had consistently required banks to manage credit risks and that the territory’s lenders had healthy balance sheets.
“The provision
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