Hong Kong's Largest Bank To Support Crypto, But There's A Catch
And because of the rising concerns, the bank acknowledges the need for crypto. The bank has outlined the rules by which virtual asset businesses must operate. These businesses can open standard banking accounts once they obtain an Approval-in-Principle (AIP) license from the Securities Regulatory Commission, according to the bank’s announcement.
More Interest Rate Hikes
Yansheng acknowledges that Hong Kong’s current high-interest rates, in contrast to those of the mainland and neighboring regions, have triggered a slowdown in the overall demand for bank loans. He anticipates that loan growth will face pressure this year. However, he also offers a glimmer of hope, stating, “It will not wait long before reducing it.” He indicates that next year’s expected interest rate cuts could prompt an improvement in loan growth.
The Hong Kong Monetary Authority’s latest statistics reveal that annualized loan growth has been negative since May, currently at -1.1%. Yansheng claims that as borrowing rates decrease in the mainland, Hong Kong’s banking industry will witness a downturn in loan growth. The high Hong Kong dollar interbank offered rate (HIBOR) currently suppresses the volume of corporate borrowing.
Despite the high-interest environment, Yansheng expects the Fed will raise rates only one more time and maintain this level for several months. His predictions suggest a cut in interest rates next year, encouraged by the slowdown of US inflation to 3% in June.
Recommended Articles
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
Best Crypto Exchange Affiliate Programs In 2023
Must Read
Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must Read
Crypto Telegram Channels List 2023 [Updated]
Must Read
Top 10 Web3 Games To Explore In 2023; Here List
Must ReadIn terms of trade financing, Yansheng notes that high-interest rates have led to trade financing being managed by neighboring regions, with some companies even shifting to Southeast Asia due to pressures on the mainland’s manufacturing industry.
Also Read: FTX Founder Bankman-Fried Might Face Pre-Trial Jail Time As Prosecutors Cite Intimidation Tactics
Time To Eye Digital Assets?
Regarding the growth of virtual assets, roundtable meetings have been held by the China Securities Regulatory Commission and the Hong Kong Monetary Authority to explore the difficulties faced by virtual property businesses. Yansheng reaffirms Hang Seng’s dedication to heeding the regulator’s instructions and accommodating these companies.
Only OSL and Hashkey, two virtual asset trading platforms, have so far been able to obtain this clearance. Due to the difficult procedure of receiving AIP certification, Hang Seng Bank says that they haven’t received many inquiries about this matter. It means that receiving such permission calls for meeting demanding requirements, making it challenging for most businesses.
Also Read: Binance Becomes First Crypto Exchange To Get Major License In Dubai