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Bank Industry Risk Analysis: Hong Kong Feb 05
Standard & Poors, Feb 2005
Abstract
The banking system of the Hong Kong Special Administrative Region (foreign currency A+/Stable/A-1; local currency AA-/Stable/A-1+) is characterized by high liquidity, sound capitalization, and a strong regulatory regime. While the profitability of the territory's banks improved in 2004 as a result of decreasing loan loss provision expenses and growing noninterest income, competition continues to put pressure on both lending rates and profits before provisions. Together with a general recovery in the Hong Kong economy and a continuous rebound in the property market, the asset quality of most domestic banks is improving. Hong Kong banks' increasing exposure to mainland China, however, suggests increasing risk in their loan books, but any negative impact is likely to remain relatively insignificant because of the...
Companies mentioned in this report are: The Hongkong and Shanghai Banking Corp. Ltd.,Hong Kong (Special Administrative Region),DBS Bank Ltd.,Bank of Communications Co. Ltd.,Fubon Bank (Hong Kong) Ltd.,DBS Bank (Hong Kong) Ltd.,Hang Seng Bank Limited,Chekiang First Bank Ltd.,Hong Kong Mortgage Corp. Ltd. ,Bank of China (Hong Kong) Ltd.,Fubon Financial Holding Co. Ltd.,Wing Hang Bank Ltd. (Unsolicited Ratings),Standard Chartered Bank (Hong Kong) Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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