Hong Kong Monetary Authority lowered the countercyclical capital buffer to 1 percent from 2 percent. “Economic indicators and other relevant evidence have signaled that the economic environment in Hong Kong has deteriorated further since the novel coronavirus outbreak. The HKMA has been taking actions, including the establishment of the Banking Sector SME Lending Coordination Mechanism, to encourage the banking sector to continue supporting the financing need of SMEs in Hong Kong,” Eddie Yue Wai-man, chief executive of HKMA said. “Lowering the countercyclical capital buffer at this juncture will allow banks to be more supportive to the domestic economy, in particular those sectors and individuals that are expected to experience additional short-term stress due to the impact arising from the outbreak,” he added.

Source: The Standard March 16, 2020 06:44 UTC