2019.10.1513:10:00UTC+00Hong Kong Monetary Authority Cuts Banks' Capital Buffer Amid Economic Weakness

The Hong Kong Monetary Authority late Monday trimmed the countercyclical capital buffer for bank to 2 percent from 2.5 percent, citing the slowing economy amid the anti-government protests. "Economic indicators and other relevant evidence have signaled that the economic environment in Hong Kong has deteriorated significantly since June 2019," the HKMA Chief Executive Eddie Yue said.

"Lowering the countercyclical capital buffer at this juncture will allow banks to be more supportive to the domestic economy and help mitigate the economic cycle."