Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has denied rumors regarding the establishment of a "bad bank" to manage non-performing loans, stating that there are no such plans among banks and that the overall health of the banking sector is stable [1][2]. Group 1: HKMA's Response - The HKMA emphasized that it has consistently required banks to manage credit risks prudently, and the banking sector's balance sheets are healthy with sufficient provisions [1]. - The HKMA reported that the loan loss coverage ratio exceeds 140%, indicating strong profitability and risk management within the banking sector [1]. Group 2: Banking Sector Performance - As of the first quarter of 2025, the total loans in the Hong Kong banking sector increased by 0.6%, while total deposits rose by 3.5% [2]. - The loan-to-deposit ratio decreased from 57.0% at the end of Q4 2024 to 55.5% at the end of Q1 2025 [2]. - The specific classified loan ratio slightly increased from 1.96% at the end of Q4 2024 to 1.98% at the end of Q1 2025, with credit card and residential mortgage delinquency rates remaining low at 0.37% and 0.13%, respectively [2]. Group 3: Liquidity and Capital Ratios - The average liquidity coverage ratio for Class 1 institutions was reported at 182.5%, significantly above the statutory minimum requirement of 100% [2]. - As of March 31, 2025, the total capital ratio for locally registered authorized institutions was 24.2%, well above the international minimum requirement of 8% [2].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has denied rumors regarding the establishment of a "bad bank" to manage non-performing loans, stating that banks are managing credit risks prudently and that the overall health of the banking sector is sound [2][3]. Group 1: Banking Sector Health - The HKMA emphasizes that the banking sector's balance sheets are healthy, with a credit provisioning coverage ratio exceeding 140%, indicating sufficient reserves to cover potential losses [3]. - As of the end of Q1 2025, the specific classified loan ratio slightly increased from 1.96% to 1.98%, but the overall asset quality remains manageable [4][5]. - The average liquidity coverage ratio for Class 1 institutions was reported at 182.5%, significantly above the statutory minimum requirement of 100% [5]. Group 2: Profitability and Loan Trends - In Q1 2025, the pre-tax operating profit of the retail banking sector increased by 15.8% year-on-year [5]. - Total loans in the Hong Kong banking sector rose by 0.6%, while total deposits increased by 3.5% during the same period [5]. - The loan-to-deposit ratio decreased from 57.0% at the end of Q4 2024 to 55.5% at the end of Q1 2025 [5]. Group 3: Credit Quality - The delinquency rates for credit card loans and residential mortgage loans remained low, at 0.37% and 0.13% respectively, as of the end of Q1 2025 [5].

Core Viewpoint - There are rumors regarding the establishment of a "bad bank" in Hong Kong to manage non-performing assets, but the Hong Kong Monetary Authority (HKMA) has denied any such plans, emphasizing the overall health of the banking sector and sufficient credit provisions [1][2]. Group 1: Banking Sector Health - The HKMA stated that the banking sector's balance sheets are healthy, with a credit provision coverage ratio exceeding 140% and strong profitability [1]. - As of the first quarter of this year, the total loan amount in Hong Kong's banking sector increased by 0.6% year-on-year, with loans used within Hong Kong rising by 0.8% and those used outside by 1.1% [2]. - The non-performing asset ratio in Hong Kong's banking sector only increased by 0.02% from the end of last year, reaching 1.98%, with residential mortgage non-performing loans at a mere 0.13% as of the end of May [2]. Group 2: Capital and Provisions - Hong Kong banks have ample provisions, with a credit provision coverage ratio of approximately 145% when accounting for the realizable value of collateral against non-performing loans [3]. - The total capital ratio for local banks was reported at 24.2% as of the end of March, significantly above international standards, indicating strong capital strength [3].

Group 1 - The Hong Kong Monetary Authority (HKMA) has no intention of establishing a "bad bank" [1] - The banking sector in Hong Kong maintains a robust balance sheet [1]

Group 1 - The core point of the article is that South Korea is seeking to establish a bad debt bank through an additional budget allocation [1] Group 2 - The initiative aims to address the rising levels of bad debts in the financial sector [1] - The establishment of the bad debt bank is part of a broader strategy to stabilize the economy and support financial institutions [1]