Hong Kong Regulators Warn Banks Over Complex Lending Risks
- SFC, HKMA single out Chinese bank unit in joint statement
- Firms need better post-lending monitoring systems, they say
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Hong Kong’s financial regulators warned banks against complex lending transactions, highlighting a case at an unnamed Chinese bank as authorities in the city increase their scrutiny of risky financial practices.
The Securities and Futures Commission and Hong Kong Monetary Authority said in a joint statement Wednesday that they had recently conducted coordinated inspections at a Chinese bank and found it had entered into transactions that illustrated ways in which other Chinese financial institutions in Hong Kong “embedded financial risks and make it difficult to conduct rigorous risk assessment.”