HKMA Deputy Chief Expresses Confidence in Banking System Stability
Hong Kong Monetary Authority Deputy Chief Executive Eddie Yue expressed confidence in the banking system's stability, citing strong deposit and loan growth, adequate provisions, and manageable credit risks.
The Hong Kong Monetary Authority's (HKMA) Deputy Chief Executive, Eddie Yue, expressed confidence in the stability of the banking system during a briefing on 6 November 2026.
Yue reported that in the first nine months of the year, total deposits and loans both rose by 7.7 per cent. On an annualised basis, deposits grew over 10 per cent and loans increased more than 10.2 per cent. Loans for local and overseas use, as well as trade finance, all recorded rapid growth. Trade finance alone expanded by 20 per cent in the first nine months.
The deputy chief further noted that the banking sector's capital levels, liquidity ratios and profitability parameters were all performing well. He said he had confidence in the stability of the banking industry.
According to Yue, the preliminary ratio of classified loans in the third quarter remained stable compared with the end of the second quarter. He added that banks had adequate provision levels. The provision coverage ratio, excluding collateral, stood at about 65 per cent. When the realisation value of collateral was included, the coverage ratio reached 150 per cent.
Yue concluded that the overall credit risk was currently manageable.