Hong Kong banking system outlook stable: Moodys

HONG KONG (AFX-ASIA) - Moody's Investors Service said in a statement that the outlook for the Hong Kong banking sector is stable because of the strong fundamentals which enabled the sector to weather the Asian financial crisis.The agency gave an average bank financial strength rating of "C" for the 13 Hong Kong-incorporated banks. High levels of capital, strong regulation and sound government financial management are among the fundamentals underpinning the decision of the rating agency, it said. Moodys also said it believes that some consolidation is inevitable within the system, but that it does not expect this to become a major issue in the near term.

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