HKMA has announced that the countercyclical capital buffer (CCyB) ratio for Hong Kong will remain unchanged at 1%. While indicators suggest that overheating risks in Hong Kong are contained, uncertainties in the global environment have increased. With plans to transition to a Positive Neutral CCyB of 1% in 2024, it has been deemed appropriate to maintain the current CCyB ratio and closely monitor the situation. The decision takes into account quantitative indicators, qualitative information, and a range of reference indicators. The CCyB is part of the Basel III regulatory capital framework and aims to enhance the resilience of the banking sector during periods of excess credit growth.
Resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/11/20231103-3/
