Structured Finance Partner Discusses Shadow Banking in Hong Kong

Thomson Reuters Accelus

This article, about the compliance challenges posed by Hong Kong's shadow banking sector, quotes structured finance partner Michelle Taylor.

Discussing the rise of shadow banking locally in Hong Kong, Taylor stated that the figures published by the Hong Kong Monetary Authority in September 2012 are mostly comprised of “a little lending by funds and property companies.” She also said shadow banking in the territory was small because no active securitization market with significant 'shadow' lending existed in Hong Kong, as opposed to the U.S. or Europe. “As there is not a significant amount of this type of lending currently, it will not affect banks in Hong Kong from a competitive perspective,” said Taylor.