top of page

US bank collapse won't lead to a repeat of 2008 crisis says Hong Kong SFC

The recent collapse of midsize US banks and the takeover of Credit Suisse by UBS for USD3.25bn were specific events with little chance of causing a repeat of the 2008 global financial crisis, according to Hong Kong's securities regulator. The Swiss central bank brokered the buyout to prevent any spillover to the global banking system. Credit Suisse's presence in Hong Kong is limited, with just one branch and USD12.74bn in assets. The Securities and Futures Commission's CEO, Julia Leung Fung-yee, reassured the public that there is no sign of a systemic banking crisis in Hong Kong, and the banking system is very liquid, well-capitalised, and resilient. The city's banks have a combined capital adequacy ratio of 20.1%, well above the global minimum of 8%.

bottom of page