Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Hong Kong banks face tight funding this year

By Sam Hopkins Subscribe to RSS | March 2nd 2012 | Views:
loading
 
  



This is because Renminbi deposits turned down in January for a second month for hitting their lowest level since July. Now, the reduction which is matched with increased lending of offshore Renminbi (CNH) from Hong Kong is in China again. Moreover, issuance of CNH certificate of deposits which was sold by Chinese Banks and CNH bonds was increased, as per some analysts. There is a competition among Chinese banks for offshore Renminbi by issuing certificates of deposit for the duration of 12 months, analysts added. The tight monetary policy implement by the Chinese central bank has been unwound by it. But, the easing has come slowly. Moreover, it has been more regarding stabilizing liquidity as compared to stimulating the system.

According to some analysts, although Renminbi deposits are little part of total funding base of banks of Hong Kong, but the slow opening up of channels for CNH which is intended to be sent back into China seems to have some long term risks, for the liquidity of Hong Kong banking system, and that too at time when it has an additional stabilizing influence on liquidity on the Chinese banking system. Analysts at Goldman Sachs said that there are now more ‘two-way’ Renminbi flows between onshore and offshore markets through the trade channels. They further said that the increased CHN outflows matched with the pickup in CHN lending activities in Hong Kong which may probably flow into China for taking the advantage of the Renminbi FDI scheme.

Tom Quarmby who is an analyst at Barclays Capital stated that there were no appreciation expectations implied by forward Renminbi exchange rates in January, which according to him was in key faction in the 2%, or Rmb12.5bn decline in deposits to Rmb576bn ($91bn). It followed a 6% fall in the month before. He further stated that the continued development of more CNH usage channels allows for easier homecoming to China which will continue to place pressure on system liquidity. Need quick finance apply with same day loans no credit check @ http://www.samedayloansnocreditchecksuk.co.uk/ and get quick funds.

Almost Rmb400bn was freed up by the central bank when loaners’ required reserves were cut by it, previous month. The effect of the move was then partially reserved by the central bank by draining money through its open-market operations. But, in January, Rmb800bn in deposits had run out of the banks. At the time when these withdrawals are part of usual seasonal flows, clue will be given by deposit data of February about banks losing more deposits to investment products and higher yielding savings. Security Times, and official newspaper told that about Rmb500bn in new loans were issued by Chinese banks in the previous month. In that case, that amount may be below expectations, which will suggest that the position of cash will be comparatively tight for the Chinese banks.

There is other side of story also. Liquidity seems to be healthy from the money market prospective. The 3.5% fall of the seven day repo rate, a gauge of short term financing costs was witnessed which was lowest in nearly a month. The same was as high as 7% before the reserve requirement cut. In Hong Kong, the total deposits increased overall 1% in January due to the slight improvement in Hong Kong dollar deposits. But, on the other hand, there was hardly 83.4% change in the loan-to-deposit ratio, which was high for Hong Kong. Mr. Quarmby said that some system liquidity is being expected despite some seasonal easing to remain comparatively tight due to structural changes which include the exit of European players and ongoing deregulation also in the CHN market.

Sam Hopkins - About Author:
Sam Hopkins is financial advisor and shares he best views on same day loans no credit check , same day payout loans and same day loans no fees

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/loans-articles/hong-kong-banks-face-tight-funding-this-year.htm

Related Loans Articles Subscribe to RSS

Borrow £500 over 6months – providing finance without any paperwork
Published by Aadam Abbas on July 20th 2012 | Loans
Borrow £500 over 6months assist you to pick that exact finance theme that may be helpful to you in ...
 
Millions applying for pay-day finance in Britain
Published by David Hurley on January 21st 2012 | Loans
Millions of people take up a pay-day every year but it is in their own hands to make it beneficial o...
 
No Credit Check Loans- Raise finance immediately without credit check
Published by Serjeant Doherty on March 20th 2012 | Loans
No credit check loans are boon for those who are suffering from multiple bad credit problems. With t...
 
Axis bank home loan
Published by Moneylaxmi on December 16th 2011 | Loans
We Will Assist you To Complete your dream of own home by providing home loan from Axis, India’s le...
 
A contraction in UK bank lending for the first time since 2009
Published by John Harry on March 3rd 2012 | Finance
The contraction in the UK bank lending is for the first time since 2009 while increasing numbers of ...
 
Boost in job market due to small bank hiring more
Published by John Harry on February 24th 2012 | Finance
The condition of the job market of the country as far as its financial sector is concerned. The rise...
 
Get funds to take care of unexpected expenses through internet finance
Published by Jeniffer Thomus on December 13th 2011 | Loans
Online financial aid is very beneficial for people where they can avail easy funding in a hassle fre...
 
Meet all needs through quick finance available online
Published by DavidVila on January 3rd 2012 | Loans
People who are deprived of finance due to some reasons can cheer now and apply for funds through bes...
 
Payday loans with no bank account: Kick out Your Small Fiscal Crunches
Published by Calvien Peter on November 29th 2011 | Loans
If you are having no bank statement, enjoy payday loans with no bank account as per your requirement...
 
Take the finance as per your monthly salary
Published by Jackfox on May 23rd 2012 | Loans
When you are in search of quick solution of your monetary problem then assistance of Quick Loans wit...
 
Cash advances for people without any bank account
Published by Alice Johnsonn on December 19th 2011 | Loans
The Cash loans without bank account are the best source of gaining funds in situations when you do n...
 
Any creditor can apply for finance aid in very easy manner
Published by Sam Hopkins on December 10th 2011 | Loans
You are in dire need of finance, but not able to get it because of mistakes you have done in past re...
 
Tips on how to stop bank foreclosure by SurePath
Published by Shaz Memon on January 3rd 2012 | Finance
Foreclosures affect the credit scores negatively and should be avoided. A borrower should be careful...
 
90 day loans bad credit-Great assistance of finance
Published by Galvin Colton on July 20th 2012 | Loans
If you are taking quick funds from 90 day loans bad credit, you can fight unexpected fiscal worries ...
 
Get Lo Doc car finance fast approval
Published by Julia Bennet on June 15th 2012 | Loans
When someone applies for a car loan what they want is the best rate of interest and fast approval. T...
 
Fulfilling the demands of the all type of creditors internet finance is best
Published by Jack Grayn on December 10th 2011 | Loans
There are several financial aids which helps the worst creditor by providing them monitory aid and a...
 
Personal finance can be fun - Saving money in this tight economy
Published by Sandra Parker on January 23rd 2012 | Finance
In a tight economy it can become hard for you to save money. But, in actuality if you give importanc...
 
Tips on loans and finance investment
Published by Pramod Kumar Singh on May 23rd 2012 | Loans
There are different kinds of loans and different investment options. To know about each one you can ...
 
Meet all small tasks with ease with short period online finance
Published by Sandra Jeux on March 1st 2012 | Finance
Now don’t bother about urgent cash you need at the time of emergency, apply online with easy short...
 
Payday loans no bank account – answer for salaried person
Published by Andrewanthony on June 4th 2012 | Loans
Payday loans no bank account are of the petty surroundings and for this reason, the lender provides ...