The Financial Institutions (Resolution) Ordinance, which came to effect last month, arms the Hong Kong Monetary Authority with powers necessary to deal with bank failures in a quick and decisive manner, HKMA chief executive Norman Chan Tak-lam wrote in an article for inSight, published yesterday.
"The HKMA, together with the relevant international counterparts, will work with banks to structure their businesses in a way such that, if banks were to fail in the future, their failure could be managed in an orderly manner," Chan wrote in the online blog. "This will mean the cost of bank failure will be internalized, and end the use of taxpayers' money to foot the bill."
Meanwhile, OCBC Wing Hang Bank reportedly plans to expand its presence in the Greater Bay Area, and seize on Belt and Road opportunities through project financing.
The bank has seen huge demand for infrastructure in Asia, and estimated US$26 billion (HK$202.8 billion) worth of investments are needed between now and 2030, said group chief executive Samuel Tsien.
For OCBC itself, bank loans to the Belt and Road projects may rise 3 to 4 percent in three years, he added.
Fewer mainland firms came to Hong Kong for bank loans last year, and Tsien expects the situation to continue in the second half.