Banker likes debt institute concept
The proposed Government-led debt securitisation institution, if successful, will allow banks to take on more mortgage lending, Hongkong and Shanghai Banking Corp chairman John Gray says.
It was probably too early to say whether such a vehicle eventually would increase property prices, he said.
'We don't have details of it yet, but by and large, I see it as a beneficial development,' Mr Gray said after a Hong Kong Shipowners Association farewell lunch for him. He retires in May.
Financial Secretary Donald Tsang recently said there was a strong case for establishment of such a body and he hoped to see preparations start when a feasibility study and subsequent market consultations were completed.
The Government has sought the help of the largest mortgage corporation in the world, the United States-based Federal National Mortgage Association, known as Fannie Mae, to plan the setting up of such as body in Hong Kong.