The consensus among Hong Kong's financial institutions is that the dollar peg is here to stay, according to Donald Hanna, executive director of Asia Economic Research at Goldman Sachs. Mr Hanna said Hong Kong's economy was robust enough to withstand asset depreciation and high interest rates, and only a severe contraction of the banking system would bring down the peg. 'Lack of confidence in the Hong Kong dollar does not mean converting them into US dollars and leaving them in a Hong Kong bank,' he said. 'And unless a substantial number of people start to transfer their money abroad, the dollar peg will stay,' he added. Mr Hanna said that Hong Kong's credit culture would also reduce the contraction of the banking sector, because those with negative equity on their properties would continue to pay their mortgages and wait for better times to arrive. 'People cannot sell up and move to another state and another bank like in the US,' he said. Commenting on calls for dollarisation, Mr Hanna said that, with the peg remaining, there would be no need to dollarise, and any attempt to do so could undermine the credibility of the Government. 'Dollarisation is next of kin to a currency board,' he said, 'so why bother.' He said intervention by the Government in the stock market had drawn a mixed response from industry players and what was needed now were steps to raise the standing of the Government and Hong Kong Monetary Authority, which had taken some knocks recently. 'What concerns me are Joseph Yam's recent comments on his commitment to the peg, the economy and unemployment,' he said. 'Unemployment should not be the concern of the HKMA.'