Chart of the Week: Hong Kong banks to remain well capitalised

The sector's total capital ratio grew from June 2014.

Despite BMI Research analysts' expectations for Hong Kong's loan growth to slow over the coming quarters, the SAR's banks are well capitalised, (and this will remain so), which should continue to instil confidence in the banking system.

According to the HKMA's Financial Stability Report, the banking sector's total capital ratio and Tier 1 capital ratio trended higher to 19.6% to 16.4% as of December 2016, which was up from 16.1% and 13.3% in June 2014.