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Hong Kong Banking Industry Outlook Good
A study by a Hong Kong brokerage says that Hong Kong's banking industry is already out of the Asian financial crisis. Hong Kong's banking industry's earnings have already returned to normal levels. Repealing interest rate restrictions would bring new opportunities for Hong Kong banking industry's development.
The gap between Hong Kong banking industry's most favorable loans interest rates and savings interest rates widened during the first half of this year, reflecting the banks' earnings level return to pre-crisis levels. As problematic enterprises finish restructuring, the bad debts problems which have tied up Hong Kong banks is nearing an end.
Earlier this month, the Hong Kong Monetary Authority announced that it was eliminating restrictions on donations and interest rates on fixed deposits of seven days or less. As Hong Kong's economy takes a turn for the better, its market flourishes and greater investment opportunities arise, the future of its banking industry for the latter half of the year looks good.
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