If the MAS doesn't follow HK's action immediately, I urge all of you to move your savings and deposits of more than $20,000 to HK.
By tomorrow 12pm if they fail to follow HK's action, I've given instructions to move all my funds parked in S'pore to my HK account.
15th October, 2008
HK bank deposits fully guaranteed:
The Exchange Fund will be used to guarantee the repayment of customer deposits held with all authorised institutions in Hong Kong, Financial Secretary John Tsang says.
Meanwhile, a contingent bank capital facility will be established to make additional capital available to locally incorporated licensed banks on request and subject to supervisory scrutiny.
Making the announcement at a press conference this afternoon Mr Tsang said the precautionary measures will safeguard banking stability in Hong Kong.
"They take immediate effect and will remain in force until the end of 2010 when a decision will be taken in the light of international financial conditions on whether they should be extended," he said.
Full protection
The use of the Exchange Fund to guarantee the repayment of customer deposits will follow the principles of the existing Deposit Protection Scheme, but including restricted-licence banks and deposit-taking companies as well as licensed banks.
The guarantee applies to both Hong Kong-dollar and foreign-currency deposits with authorised institutions in Hong Kong, including those held with Hong Kong branches of overseas institutions. It will cover the amount of deposits in excess of that protected under the Deposit Protection Scheme.
Mr Tsang said he did not expect the new arrangements will need to be triggered, since Hong Kong's banking sector is fundamentally sound.
"They are being introduced to provide assurance to depositors that their money is protected, and to locally incorporated licensed banks that we will assist them to strengthen their capital base if it is affected by continuing stress in global financial markets," Mr Tsang said.
"Although that is a remote possibility, I have, after consulting the Exchange Fund Advisory Committee, decided it is prudent for us to be prepared and have a mechanism ready to assist the banks if needed."
Monetary Authority Chief Executive Joseph Yam said these are precautionary and pre-emptive measures designed to further strengthen confidence in the local banking system.
"The banking sector in Hong Kong continues to be healthy and robust with local banks' capital adequacy ratio exceeding 14%, well above the Basal minimum prescribed in law of 8%. Their liquidity ratio is nearly 40%, compared to the minimum requirement of 25% specified in the Banking Ordinance, while their bad-loan ratio is less than 1%."
However, events around the world in recent weeks make it prudent for the Government to introduce arrangements to bolster confidence and safeguard banking stability, Mr Yam added.
He said the review on the Deposit Protection Scheme will continue and a decision will be made by the end of 2010.
By tomorrow 12pm if they fail to follow HK's action, I've given instructions to move all my funds parked in S'pore to my HK account.
15th October, 2008
HK bank deposits fully guaranteed:
The Exchange Fund will be used to guarantee the repayment of customer deposits held with all authorised institutions in Hong Kong, Financial Secretary John Tsang says.
Meanwhile, a contingent bank capital facility will be established to make additional capital available to locally incorporated licensed banks on request and subject to supervisory scrutiny.
Making the announcement at a press conference this afternoon Mr Tsang said the precautionary measures will safeguard banking stability in Hong Kong.
"They take immediate effect and will remain in force until the end of 2010 when a decision will be taken in the light of international financial conditions on whether they should be extended," he said.
Full protection
The use of the Exchange Fund to guarantee the repayment of customer deposits will follow the principles of the existing Deposit Protection Scheme, but including restricted-licence banks and deposit-taking companies as well as licensed banks.
The guarantee applies to both Hong Kong-dollar and foreign-currency deposits with authorised institutions in Hong Kong, including those held with Hong Kong branches of overseas institutions. It will cover the amount of deposits in excess of that protected under the Deposit Protection Scheme.
Mr Tsang said he did not expect the new arrangements will need to be triggered, since Hong Kong's banking sector is fundamentally sound.
"They are being introduced to provide assurance to depositors that their money is protected, and to locally incorporated licensed banks that we will assist them to strengthen their capital base if it is affected by continuing stress in global financial markets," Mr Tsang said.
"Although that is a remote possibility, I have, after consulting the Exchange Fund Advisory Committee, decided it is prudent for us to be prepared and have a mechanism ready to assist the banks if needed."
Monetary Authority Chief Executive Joseph Yam said these are precautionary and pre-emptive measures designed to further strengthen confidence in the local banking system.
"The banking sector in Hong Kong continues to be healthy and robust with local banks' capital adequacy ratio exceeding 14%, well above the Basal minimum prescribed in law of 8%. Their liquidity ratio is nearly 40%, compared to the minimum requirement of 25% specified in the Banking Ordinance, while their bad-loan ratio is less than 1%."
However, events around the world in recent weeks make it prudent for the Government to introduce arrangements to bolster confidence and safeguard banking stability, Mr Yam added.
He said the review on the Deposit Protection Scheme will continue and a decision will be made by the end of 2010.
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