HONG KONG (Reuters) – The Hong Kong Monetary Authority (HKMA) has cut the amount of cash that banks must keep as reserves, releasing an extra HK$200-300 billion ($25.50-38.24 billion) into the broader economy which has been hit by months-long protests and the Sino-U.S. trade war.
The central bank late on Monday announced a reduction of the Countercyclical Capital Buffer (CCyB) ratio of banks to 2.0% from 2.5%, with immediate effect, particularly aimed at boosting credit to the struggling small and medium enterprises. It was the first cut in the CCyB ratio since it was introduced in 2015.
Indicators - Evidence - Environment - Hong - Kong
“Economic indicators and other relevant evidence have signaled that the economic environment in Hong Kong has deteriorated significantly since June 2019,” HKMA chief executive Eddie Yue said in the statement.
“Lowering the countercyclical capital buffer at this juncture will allow banks to be more supportive to the domestic economy and help mitigate the economic cycle,” Yue added.
Hong - Kong - Months
Hong Kong, which has been rocked by four months of often...
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