The
largest local bank in Hong Kong, Hang Seng Bank, has shared a predicted rise in
interest rates which could precipitate a slowdown in demand for bank loans
compared to mainland and neighboring regions.
The bank
noted that high-interest rates have, in the past, shifted the management of
trade financing to neighboring regions, with some companies even relocating to
Southeast Asia due to pressures on the mainland’s manufacturing industry.
To address
the snowballing concerns, the bank has embraced the cryptocurrencies market and
has also established guidelines for crypto asset businesses to adhere to while
conducting operations.
The bank
has announced that these crypto asset businesses can open standard banking
accounts after obtaining an Approval-in-Principle (AIP) license from the
Securities Regulatory Commission.
Roundtable
meetings between the China Securities Regulatory Commission and the Hong Kong
Monetary Authority have been held to address the obstacles faced by virtual
asset businesses.
Lin
Yansheng, Director of Commercial Banking at Hang Seng Bank, emphasized the
Bank’s determination to adhering to regulator instructions and supporting these
companies.
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