Thousands withdraw BEA deposits; queues overnight; Rumours unfounded, say authorities; police called in; Bank's chief buying shares, and so is Li Ka-shing
The Hong Kong Monetary Authority and the government gave assurances yesterday that the Bank of East Asia is financially sound after rumours that it was in trouble sent thousands of jittery depositors to branches yesterday in a citywide bank run.
'I can confirm categorically that these rumours are unfounded,' the authority's chief executive, Joseph Yam Chi-kwong, said in response to the panic - spurred by a wave of text messages that began late on Tuesday.
Despite their assurances, late last night customers were already queueing outside BEA branches to withdraw deposits today.
Mr Yam said Hong Kong's fifth-biggest bank by assets had sufficient funds to meet the needs of its customers. Its capital adequacy ratio, which measures a bank's ability to absorb losses and protect depositors, was almost double that required.
Financial Secretary John Tsang Chun-wah rejected the rumours as unfounded and malicious.
The bank's finances were sound 'and there is no problem at all', he said. 'The BEA does not need our assistance but we will fully support it if there is any need.'