The Hong Kong Monetary Authority says it will tighten rules on bank lending next year. The move could trigger a scramble to attract saving deposits, and result in higher interest rates. The aim is to discourage local banks from using short-term funding from the interbank market to finance long-term loans. The Authority said banks would need to seek more a stable source of cash, such as deposits. The Authoritys Chief Executive, Norman Chan Tak-lam said the action was necessary to prevent a possible credit crunch in the banking sector that would affect businesses.
Posted on: Sun, 20 Oct 2013 11:41:01 +0000
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