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Hong Kong Banking System Remains Robust in 2000
The banking sector of Hong Kong remained robust and healthy in 2000, and pre-tax operating profits grew by 45.7 percent in the first nine months, compared with the 15.2 percent growth in the same period of 1999, according to the Hong Kong Monetary Authority (HKMA) in Hong Kong Thursday.
The HKMA attributed the strong growth mainly to a significant drop in bad debt charge and increases in net interest and fee income.
The asset quality of local banks continued to improve slowly, according to the HKMA. The bad debt charge for local banks fell by 54.8 percent in the first nine months of 2000. Classified loans ( loans classified as substandard, doubtful and loss) declined to 7. 72 percent in September 2000, from the peak 10.33 percent recorded in September 1999.
The HKMA said the asset quality of mortgage portfolio remained good in 2000, while banks remain well capitalized and high liquid.
The capital adequacy ratio and the liquidity ratio of the banks were 18.7 percent and 50.2 percent, respectively, in September 2000.
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