The Hong Kong Monetary Authority (HKMA) has reportedly sought reports from banks on their exposure to troubled China Evergrande Group.
According to a Bloomberg report, the central banking institution asked the lenders last week and gave them 24 hours to report their financial commitments to Evergrande.
Go deeper with GlobalData
The move comes as Chinese property developer Evergrande Group is struggling with a liquidity crisis. It is said to have accumulated more than $300bn in liabilities.
People familiar with the development told the publication that Evergrande missed some interest payments due last week.
However, HKMA did not confirm the development. In an email to Bloomberg, an HKMA spokesperson said: “The HKMA has been keeping the credit risk facing the banking sector under close monitoring.
“Our assessment is that the overall risk to banking stability remains manageable.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDespite central bank’s concerns, the banks in the region have downplayed the risks.
Last week, HSBC Holdings CEO Noel Quinn said that the lender is yet to encounter any direct impact from Evergrande crisis.
Another major bank DBS Group Holdings has no exposure to Evergrande. DBS Group CEO Piyush Gupta also told Bloomberg that the current crisis does not pose a systemic risk to the region’s banking industry.
Last month, HKMA urged banks and all authorised institutions to encourage all bank staff to get vaccinated.
