Finance
Hong Kong Banks Hoard Record Piles of Cash as Economy Sputters
- Government is pushing banks to lend more to small businesses
- Lending has slumped amid high rates, property downturn
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Hong Kong banks are hoarding cash and liquidity despite calls by the government to help out struggling small businesses with funding to reignite the city’s ailing economy.
Banks in the city, including HSBC Holdings Plc and Standard Chartered Plc, held an aggregate liquidity coverage ratio of more than 180% in the second quarter, the highest ever and almost double the 100% requirement. The ratio — which gages liquid assets held to meet short-term obligations — eased slightly to 178.4% in September, according to the latest data from the Hong Kong Monetary Authority.