HKMA to raise countercyclical buffer by maximum in 2017
Move ‘needed’ to counteract risk in housing and credit markets – HKMA chief
The Hong Kong Monetary Authority (HKMA) will raise the counter-cyclical capital buffer for local banks to 1.25% from January 1, 2017, it announced today (January 14).
The move will double the amount of common equity tier 1 (CET1) capital that Hong Kong banks have to hold, from the prevailing level of 0.625% of risk-weighted assets. This is the maximum increase allowable under the Basel III framework, and is in line with the HKMA's previous policy.
A further increase in the buffer was "warranted"
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