Smaller lenders shuffle their feet as heavyweights drag theirs
Hongkong and Shanghai Banking Corp traditionally leads the local pack when it comes to reacting to the US Federal Reserve's interest-rate adjustments. But not yesterday, after the Fed's decision on Tuesday to increase rates by another 25 basis points.
Lai See understands key HSBC decision-makers were on the road. A catch-up meeting is scheduled for today.
Meanwhile, its confused rivals spent most of yesterday waiting for somebody else to make the first move. After much hemming and hawing, Bank of China (Hong Kong), Hang Seng Bank, Bank of America and Citic Ka Wah all announced they would raise deposit and lending rates by 25 basis points. Standard Chartered and Bank of East Asia are expected to wait for HSBC's decision before following with theirs.
sell first, ask questions later
After the fall, the lessons learned.
