Hong Kong banks are expected to increase the prime rate and pass the funding costs on to their customers. Photo: Bloomberg
Hong Kong banks are expected to increase the prime rate and pass the funding costs on to their customers. Photo: Bloomberg

Hong Kong’s currency intervention pushes key banking liquidity indicator below HK$100 billion mark

  • Aggregate balance fell below HK$100 billion after the Hong Kong Monetary Authority intervened to defend currency peg during New York trading hours
  • Lower liquidity will add pressure on more local banks to join HSBC and peers to increase their prime rate, an analyst said

Hong Kong banks are expected to increase the prime rate and pass the funding costs on to their customers. Photo: Bloomberg
Hong Kong banks are expected to increase the prime rate and pass the funding costs on to their customers. Photo: Bloomberg
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