Monetary Authority Announces Countercyclical Capital Buffer Ratio for Hong Kong

The Monetary Authority announced that the countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1%. The CCyB will require banks to hold additional capital buffers when credit growth in the banking sector rises above a certain level. These extra buffers are intended to ensure that banks have sufficient resources to withstand potential losses in periods of financial stress caused by the rapid expansion of credit. Given that the uncertainties of the current economic environment are high, it is essential to ensure sufficient buffers are in place against potential financial sector risks. In addition, while there has been some improvement in economic conditions domestically, there is still considerable uncertainty about the global economic environment. As such, the Bank will maintain the Countercyclical Capital Buffer (CCyB) ratio at its current level.

resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/02/20230208-3/

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