Continued uncertainty over the ability of mainland companies to repay loans could force some banks to make further provisions, according to the Hong Kong Monetary Authority. Deputy chief executive David Carse said banks were in a difficult situation in forecasting the correct provisioning due to uncertainties over the mainland debt situation. 'I think the problem . . . is we are in a situation that is changing quite rapidly,' he said. Mr Carse said the outlook for banks was bad debt had peaked. However, he warned against using recent interim results to draw the conclusion that the worst was over. 'I think there are improvements taking place for some banks, but . . . the picture for the half year will be rather mixed. You can't say what you've seen so far is fully representative for all the results for this half year.'