The Hong Kong Monetary Authority's bid to raise the capital adequacy ratio standard from 8 per cent to 10-12 per cent has industry support, according to deputy chief executive David Carse. The capital adequacy ratio sets the amount of capital banks need to put up when extending loans to ensure prudent management. The Bassel-based Bank for International Settlements has set a global standard of 8 per cent, far less than the local average of 17 per cent. The HKMA last week completed a consultation with banks on its proposals. 'The consultation showed that banks welcome the proposed move,' Mr Carse said. 'The HKMA will continue to talk to individual banks about the implementation of the new requirement.' He said the authority would conduct a review of banks' liquidity ratio systems, focusing on issues such as Hong Kong-dollar deposit levels and maturity mismatches. He said the authority had no intention of changing the 25 per cent liquidity ratio level, and denied rumours it planned to set up a so-called Hong Kong-dollar liquidity ratio.