Hong Kong introduces resolution facility after FSB peer review
Updated funding framework could aid embattled banks in case of liquidity crunch
The Hong Kong Monetary Authority has launched a dedicated liquidity facility for firms entering resolution and updated its broader funding framework to assist banks in the event of a liquidity crisis.
The changes are designed to improve the system through which banks can borrow money from the HKMA in case of a liquidity crunch, the authority said in a circular to lenders last week. The measures come as Hong Kong’s economic growth slows amid ongoing social unrest.
“This is part of our ongoing
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