Japanese banks which pulled out of Hong Kong during the regional economic crisis are unlikely to return, according to Jardine Matheson director Martin Barrow.
However, credit flows from the larger banks, which have dried up over the past two years, would resume after the current round of rationalisation and mergers was complete, he said.
Mr Barrow said larger banks would remain committed to the SAR.
The third-biggest trust bank, Mitsui Trust & Banking, closed its Hong Kong office last year and Daiwa Bank downgraded its branch to a representative office.
A number of smaller financial institutions have closed, including Hokkaido Takashoku Bank, Hokuriku Bank, Suruga Bank, Fukui Bank and Mie Bank.
'When the pressure came, they rightly withdrew. I think it's unlikely those banks will return,' Mr Barrow told the Japan Society.
