Banks Tap Hong Kong’s Discount Window for Most Funds Since 2021
- Overnight Hibor more than 120 basis points off discount window
- Some analysts believe borrowing not part of systematic trend
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Banks in Hong Kong borrowed the largest amount of short-term cash in over two years from the authorities, suggesting there was sudden demand for liquidity.
The Hong Kong Monetary Authority — the city’s de-facto central bank — loaned out HK$3.77 billion ($482 million) through its discount window on Monday, the most since January 2021, according to data compiled by Bloomberg. Lenders had only tapped the facility six other days this year, with the next largest amount at just HK$844 million.