SCMP: Hong Kong banks hoarding capital on Basel III
Banks in Hong Kong are still waiting for new global rules to be finalized, and as a result, hoarding cash rather than returning it to investors, or making use of it in more profitable ways. Local lenders likely to be more affected than larger Hong Kong banks, due to lower capital levels and less expertise.
Last week, Standard Chartered’s board chose not to issue a dividend, for the fourth half yearly period running and cited the finalization of the Basel 3 regulations as a major factor. While uncertainty prevails as to the form the final rules will take, however, analysts suggest that the more locally focused Hong Kong banks may be more affected than international banks.