Hang Seng Bank sees little impact from charges/fees

HONG KONG (AFX-ASIA) - Hang Seng Bank Ltd vice-chairman and chief executive Vincent Cheng said there has been little impact following the announcement of new charges by the bank last week.	    "The number of accounts remain almost the same after the (announcement of the) charges. Our clients have been very calm," Cheng told reporters after the company's AGM.	    On the day of the announcement of the charges, the bank received 900 phone calls enquiring about the charges. The number of calls fell to 300 a day after the Easter holidays, he said.	    "I think the calm response from our customers was a result (of the fact) that the bank has introduced exemptions (from) the new charges. Our customers are very supportive," he said.	    Cheng said he is not worried of possible outflows from the bank's deposits into other investment instruments following the decline in interest rates.	    "The bank has already capital guaranteed funds (unit trust funds). And the funds are very popular. We are not worried about interest rate changes."	    Cheng said he thinks the interest rate reduction cycle is not over yet, adding he expects the U.S. Federal Reserve to announce further rate cuts.	    Cheng said the declining trend in interest rates will be positive for the the local economy, adding that it will stimulate the mortgage business. 

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