Press Release

 

 

HKMA statement on Ming Pao story

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In today (Thursday)'s Ming Pao Daily News there is a story that the HKMA is considering replacing the entire management of a local bank, appointing a manager to take over the bank, and demanding that the majority shareholder sell their interest in the bank. The bank is not named, but the name of Hongkong Chinese Bank is mentioned in the same story.

There is no foundation to this story. The HKMA has no plan to take such actions in respect of Hongkong Chinese Bank or any other local bank.

The Hong Kong banking sector has coped extremely well with the financial turmoil over the past year or so. While profitability has dropped, banks' capital and liquidity positions remain strong. In response to the financial turmoil banks are themselves taking a number of measures, including strengthening their internal systems and controls and, in some cases, strengthening their management. The HKMA is maintaining a watching brief on the actions being taken by individual banks.

END/Thursday, April 22 1999

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