According to Bloomberg, some large banks in Hong Kong are discussing the establishment of a bad debt bank to absorb non-performing loans. It is said that several banks, including Hang Seng Bank and Bank of Communications, have recently engaged with consulting firms and conducted preliminary discussions. Subsequently, an HKMA spokesperson stated that there is no intention to set up the rumored bad debt bank, and it is understood that the relevant banks also have no such plans.
The HKMA spokesperson emphasized that it has consistently required banks to manage credit risk prudently. Overall, the balance sheets of Hong Kong banks are healthy, credit risks are controllable, provisions are adequate, with the bank's credit provision coverage ratio exceeding 140%, and profitability is good; thus, the related rumors are unfounded.
Additionally, Hang Seng Bank responded to inquiries from RTHK, stating that it does not comment on market speculation.
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