Wing Hang Bank said it had strengthened its liquidity and credit-risk management to cope with speculative attacks on the Hong Kong dollar. Chairman Patrick Fung Yuk-bun said the confusion resulting from the latest round of speculation was not as great as that after attacks in October and January, which probably reflected the Hong Kong Monetary Authority's improved tactics in managing the peg. 'Banks and the Government are now much more liquid than they were during the previous attacks. We are lending more on the short end in an effort to remain liquid,' he said. Wing Hang Bank remains a net lender in the local money market. Mr Fung said the bank was increasingly cautious about counter-party risks in its interbank lending. However, he did not envisage a significant reduction of the credit ceilings the bank grants to its interbank customers. Despite the renewed currency attacks, Mr Fung said the upward pressure on banks' funding costs in the second half should not be as high as it was in the first half. He said the need for banks to compete for customer deposits at higher interest rates was diminishing because loan growth remained very slow.