HAVE THE BANKS STOPPED WOBBLING?
The traditional Hong Kong solution for banks and DTCs (deposit-taking companies) that get into trouble is for either the HongkongBank or Standard Chartered Bank to issue a public statement of total support for the ailing institution and then to provide it with credit lines, which the government underwrites. The local community has considerable faith in both note-issuing banks, and a demonstration of support from either of them is usually enough to quell a run.
Times have changed.
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