A possible closure of Hainan International Trust and Investment Corp (Hitic) would not have a big impact on local banks in the opinion of Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong. Even if local banks had exposure to Hitic, they might already have made provisions for the losses, Mr Yam said in the wake of Beijing's central bank governor this week remarking that Hitic - which recently missed a HK$1 billion bond payment - could face bankruptcy if it failed to reach a deal with creditors. 'Local banks have taken a very cautious approach to lending to these mainland financial institutions after Gitic,' Mr Yam said, referring to the 1998 collapse of the Guangdong International Investment Corp. He also said any mainland moves to allow more flexibility in the yuan exchange rate and in domestic interest rates would not have a big impact on Hong Kong because of different economic structures. He also countered calls for a devaluation of the HK dollar, saying consumer prices and import costs would rise.