Financial news
Written by: Hu Xueneng Huang Youhua
2020-03-16 16:53
Last updated: 2020-03-16 18:01Many central banks around the world have announced interest rate cuts, but capital markets remain extremely volatile. The Chief Executive of the HKMA, Yu Weiwen, will meet with reporters at 5 pm and believe that he will mention today's market conditions and the actions of central banks.
Yu Weiwen pointed out that reducing the countercyclical buffer capital (ccyb) from 2% to 1% can release 500 billion yuan of additional credit lines, hoping to give banks more space and resources to help SMEs weather the crisis. He also pointed out that if the Hong Kong economy continues to be under pressure, the bank's capital level will be restricted and SMEs will encounter difficulties in capital turnover, the possibility of adjusting the ratio will be considered at that time.
Yu Weiwen bluntly stated that, in theory, the ratio can be reset to zero. He also pointed out that depending on the capital of the bank and the funding of SMEs, the minimum can be reduced to zero.
Interest rates are generally stable
On the other hand, Yu Weiwen said in a press release issued this morning (16th) that following the US interest rate cut on March 3, the global central bank and the financial departments of various countries have cut interest rates or taken other measures in response to the new crown pneumonia epidemic. risks of.
He pointed out that the new crown pneumonia epidemic has drastically adjusted global financial markets. Although the Hong Kong stock market has also followed fluctuations in the periphery, the exchange rate and interest rate of the Hong Kong dollar have remained generally stable, and the banking system is stable with sufficient capital and liquidity.
He also believes that the Hong Kong dollar interest rate should be adjusted accordingly as the US cuts interest rates. However, the actual adjustment will still be affected by factors such as market demand for funds. He also pointed out that the interest rates of different maturities may have different adjustment ranges, and the interest rate of deposits and loans at the retail level of banks depends on the commercial considerations of the banks themselves.
The U.S. Federal Reserve cuts interest rates by 1%, and the HKMA cuts its basic interest rate to 0.86%.
HKMA cuts countercyclical buffer capital ratio to 1% to give banks more room to support local economy
U.S.A. breaks interest rate, HKMA Yu Weiwen reminds: Hong Kong dollar interest rate cut should be reduced accordingly
Yuwen Wen