Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Have there been any banking crises in Hong Kong, and how were they resolved?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Carrie (migeru at eurotrib dot com) on Mon Jun 7th, 2010 at 04:23:48 AM EST
[ Parent ]
There were no HK bank failures between 1935 and 1964 and in 1965 they used a government-backed takeover, which has been SOP for the Bank of England for a long time.

Hong Kong Calms Depositors After Bank East Asia Run (Update2) - Bloomberg.com

Hong Kong hasn't had a bank failure since the Hong Kong Monetary Authority was founded in 1993, though it has a long history of financial crises associated with its lenders. There was a brief run on Standard Chartered Plc and Citigroup Inc.'s local unit after the failure of BCCI Group in 1991, while the failure of a small Hong Kong bank in the 1980s triggered runs on rivals and led to efforts to strengthen regulation.

A banking crisis in 1965 prompted a government-backed takeover of Hang Seng Bank Ltd. by the Hongkong and Shanghai Banking Corp. for HK$51 million ($6.6 million). HSBC Holdings Plc now owns 62 percent of Hang Seng, which has a market value of $36.5 billion.

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Mon Jun 7th, 2010 at 04:45:47 AM EST
[ Parent ]


Top Diaries

Occasional Series